What is the weighted-average contribution margin ratio


Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $2,220,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. what is the weighted-average contribution margin ratio ?

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Accounting Basics: What is the weighted-average contribution margin ratio
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