Faune Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division. The results of operations for the most recent quarter are:
|
Bedroom Division
|
Dining Room Division
|
Total
|
|
Sales
|
$500,000
|
$750,000
|
$1,250,000
|
|
Variable costs
|
225,000
|
450,000
|
675,000
|
|
Contribution margin
|
$275,000
|
$300,000
|
$575,000
|
(a) Determine the company's sales mix.
(b) Determine the company's weighted-average contribution margin ratio.