Brief Exercise 19-10 Faune Furniture Co. consists of two divisions, Bedroom Divi

Question

Brief Exercise 19-10 Faune Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division. The results of operations for the most recent quarter are: Bedroom Dining Room DivisionDivision Total Sales Variable costs Contribution margin (a) Determine the company's sales mix. (Round answers to 2 decimal places, e.g. 0.15.) $767,000 $1,276,000 688,000 $319,000 $588,000 $509,000 240,000 448,000 $269,000 Sales mix Bedroom Division Dining Room Division (b) Determine the company's weighted-average contribution margin ratio. (Round answer to 2 decimal places, e.g. 0.15.) Weighted-average contribution margin ratio

Explanation / Answer

a) The correct answer is :

Note :

1.

Sales Mix = Division's Sales / Total Sales

2. Bedroom Division = $ 509,000 / $ 1,276,000

Dining Room Division = $ 767,000 / $ 1,276,000

b)

The correct answer is 0.46

Sales Mix Bedroom Division 0.40 Dining Room Division 0.60

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