Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 75% for Sporting Goods and 25% for Sports Gear, as determined by total sales dollars. Bonita incurs $9500000 in fixed costs. The contribution margin ratio for Sporting Goods is 40%, while for Sports Gear it is 70%. What will sales revenue be for the Sporting Goods Division at the break-even point? $11400000 $14843750 $8000000 O $5000000
Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 75% for Sporting Goods and 25% for Sports Gear, as determined by total sales dollars. Bonita incurs $9500000 in fixed costs. The contribution margin ratio for Sporting Goods is 40%, while for Sports Gear it is 70%. What will sales revenue be for the Sporting Goods Division at the break-even point? $11400000 $14843750 $8000000 O $5000000
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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![Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 75%
for Sporting Goods and 25% for Sports Gear, as determined by total sales dollars. Bonita
incurs $9500000 in fixed costs. The contribution margin ratio for Sporting Goods is 40%,
while for Sports Gear it is 70%. What will sales revenue be for the Sporting Goods Division
at the break-even point?
$11400000
$14843750
$8000000
O $5000000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F790b99b4-ceaf-476e-896c-91625995650e%2Fb3b5332f-976c-497e-8197-757b2a12eef3%2Foiuuwz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 75%
for Sporting Goods and 25% for Sports Gear, as determined by total sales dollars. Bonita
incurs $9500000 in fixed costs. The contribution margin ratio for Sporting Goods is 40%,
while for Sports Gear it is 70%. What will sales revenue be for the Sporting Goods Division
at the break-even point?
$11400000
$14843750
$8000000
O $5000000
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