Oriole Company has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available: Standard Division Premium Division Total Sales $400000 $600000 $1000000
Oriole Company has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available: Standard Division Premium Division Total Sales $400000 $600000 $1000000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Oriole Company has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis
products. The following information is available:
Standard
Division
Premium
Division
Total
Sales
$400000
$600000
$1000000
Variable costs
$220000
200000
Contribution
$180000
$400000
margin
Total fixed
costs
$300000
What is the company's weighted-average contribution margin ratio? (Round final answer to nearest whole percent.)
○ 58%
○ 65%
○ 50%
O 12%
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