Sheffield Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% forSporting Goods and 35% for Sports Gear. Sheffield incurs $7770000 in fixed costs. Thecontribution margin ratio for Sporting Goods is 30% , while for Sports Gear it is 50%. What willbe the total contribution margin at the break-even point?$6685814.$9030000.O $7840000.O $7770000.

Calculate the weighted average contribution margin.

Answered: Sheffield Corp. has two divisions;…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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