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Vaughn Manufacturing has two divisions; Sporting Goods and Sports Gear. The sales mix is 80%...

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Accounting

Vaughn Manufacturing has two divisions; Sporting Goods and Sports Gear. The sales mix is 80% for Sporting Goods and 20% for Sports Gear, as determined by total sales dollars. Vaughn incurs $8500000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will sales revenue be for the Sporting Goods Division at the break-even point?

Select answer from the options below

$5000000

$7500000

$20000000

$14782609

Answer & Explanation Solved by verified expert
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