Swanson Company Has Two Divisions; Sporting Goods and Sports Gear

question 61

Multiple Choice

Swanson Company has two divisions; Sporting Goods and Sports Gear.The sales mix is 65% for Sporting Goods and 35% for Sports Gear.Swanson incurs $4,440,000 in fixed costs.The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%.
-The weighted-average contribution margin ratio is

• A)37%.
• B)40%.
• C)43%.
• D)50%.

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Definitions:

Performance Relationship

The connection between various factors, such as employee behavior or work environment, and their impact on job performance.

Motivation Theories

A set of principles concerning what drives individuals to initiate and sustain actions towards achieving their goals.

Expectancy Theory

A motivational theory that explains how individuals decide to behave in ways that they believe will lead them to desired outcomes based on expectations of future events.

Goal Orientation

A mindset that focuses on achieving specific outcomes or benchmarks as a means to promote success or accomplishment.