Question

Question 30 4 pts MacCloud Industries 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 $400,000 $600,000 $1,000,000 Variable costs 280,000 360,000 Contribution margin $120,000 $240,000 Total fixed costs $300,000 What is the weighted average contribution margin ratio? 50% 35% OOO 36% O 34%

Answer 1

30.

Sales mix = Standard division : Premium division

= 400,000 : 600,000

= 2:3

Contribution margin ratio of Standard division = Contribution margin/Sales

= 120,000/400,000

= 30%

Contribution margin ratio of Premium division = Contribution margin/Sales

= 240,000/600,000

= 40%

Weighted average contribution margin ratio = 30 x 2/5 + 40 x 3/5

= 12% + 24%

= 36%

Third option is the correct option

32.

	Product A	Product B
Contribution margin per unit	$25	$30
Machine hours per unit	2	4
Contribution margin per Machine hour	25/2 = $12.5	30/4 = $7.5

First option is the correct option

Note : For this question, you have provided two answer options categories. Third option is the correct option if we consider the other answer choices category

Next question

Contribution margin per unit of limited resource is the key factor in determining sales mix if company has limited resources.

First option is the correct option

Next question

A variable cost is the cost that varies in total in proportion to changes in the level of activity.

First option is the correct option

2.

A cost which remains constant per unit at various levels of activity is a variable cost.

Second option is the correct option

Please ask if you have any query related to the question. Thank you