Ed Vaughn Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Vaughn incurs $2360000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 20%. What is the total contribution margin at the break-even point? O $11800000 O $2360000 O $1416000
Ed Vaughn Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Vaughn incurs $2360000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 20%. What is the total contribution margin at the break-even point? O $11800000 O $2360000 O $1416000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...
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![Ed Vaughn Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40%
for Indoor Sports. Vaughn incurs $2360000 in fıxed costs. The contribution margin ratio for the Outdoor Sports Division is 40%,
while for the Indoor Sports Division it is 20%.
What is the total contribution margin at the break-even point?
O $11800000
O $2360000
O $1416000
O $944000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe8bdfa33-1942-447e-b795-22c8e965d533%2Fd83926e9-9c53-4636-bcc1-5d865f4d8f2a%2F4dwmrdk_processed.png&w=3840&q=75)
Transcribed Image Text:Ed Vaughn Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40%
for Indoor Sports. Vaughn incurs $2360000 in fıxed costs. The contribution margin ratio for the Outdoor Sports Division is 40%,
while for the Indoor Sports Division it is 20%.
What is the total contribution margin at the break-even point?
O $11800000
O $2360000
O $1416000
O $944000
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