MacCloud Industries Has Two Divisions-Standard and Premium - What Is the Weighted-Average Contribution Margin Ratio?
A)34%
B)35

question 60

Multiple Choice

MacCloud Industries has two divisions-Standard and Premium.Each division has hundreds of different types of tennis racquets and tennis products.The following information is available: $\begin{array}{lrr}&\text { Standard Division}&\text { Premium Division }&\text {Total }\\\text { Sales } & \$ 400,000 & \$ 600,000&\$1,000,000 \\\text { Variable costs } & 280,000 & 360,000 \\\text { Contribution margin }&\$120,000&\$240,000\\\text { Total fixed costs }&&&\$320,000\end{array}$
- What is the weighted-average contribution margin ratio?

• A)34%
• B)35%
• C)36%
• D)50%

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