Ed Bramble Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Bramble incurs $1470000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 20%, while for the Indoor Sports Division it is 50%. What is the total contribution margin at the break-even point? $588000 O $1470000 O $882000 O $2940000
Ed Bramble Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Bramble incurs $1470000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 20%, while for the Indoor Sports Division it is 50%. What is the total contribution margin at the break-even point? $588000 O $1470000 O $882000 O $2940000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting
Transcribed Image Text:Ed Bramble Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60%
for Outdoor Sports and 40% for Indoor Sports. Bramble incurs $1470000 in fixed costs. The
contribution margin ratio for the Outdoor Sports Division is 20%, while for the Indoor Sports
Division it is 50%.
What is the total contribution margin at the break-even point?
$588000
O $1470000
O $882000
O $2940000
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