FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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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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