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