1. Vaughn Company has sales of $504000, variable costs of $446040, and fixed costs of $21000. Ivanhoe Company has sales of $504000, variable costs of $206000, and fixed costs of $257000. Vaughn’s contribution margin ratio is
89%.
12%.
59%.
96%.
2.Ed Concord Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Concord incurs $2010000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 20%, while for the Indoor Sports Division it is 70%.What is the total contribution margin at the break-even point?
$2010000
$804000
$1206000
$2871429
