MacCloud Industries has two divisions%u2014Standard and Premium. Each division h

Question

MacCloud Industries has two divisions%u2014Standard 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                                                                     $320,000

What is the weighted-average contribution margin ratio?

a50%

b34%

c36%

d35%

Explanation / Answer

34%

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