Use the Following Information for Questions

question 112

Multiple Choice

Use the following information for questions
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 $6,660,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%.
-The break-even point in dollars is

• A) $2,464,200.
• B) $15,488,373.
• C) $16,650,000.
• D) $18,000,000.

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Definitions:

Common Identity

The sense of belonging to a group where members identify with a shared identity beyond their individual differences.

Prisoner's Dilemma

A paradox in decision analysis in which two individuals acting in their own self-interest do not produce the optimal outcome.

Ingroup Bias

The tendency to favor members of one's own group over those from external groups.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.