Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $5365000 in fixed costs. The contribution margin ratio for Sporting Goods is 30 % , while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point? O $8109884 O $5075000 O $9425000. O $4350000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for
Sporting Goods and 35% for Sports Gear. Bonita incurs $5365000 in fixed costs. The
contribution margin ratio for Sporting Goods is 30 % , while for Sports Gear it is 50%. What will
sales be for the Sporting Goods Division at the break-even point?
O $8109884
O $5075000
O $9425000.
O $4350000.
Transcribed Image Text:Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $5365000 in fixed costs. The contribution margin ratio for Sporting Goods is 30 % , while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point? O $8109884 O $5075000 O $9425000. O $4350000.
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