Hill Toppers sells two types of hiking boots, the Voyager and the Traveler. The Voyager sells for $150 and has a contribution margin of $60. The Traveler sells for $100 and has a contribution margin of $60. Total revenue for the period is $300,000 and total fixed costs are $125,000. Each product contributes 50% to total revenue. Using the weighted contribution margin ratio, calculate profit before taxes. a. $25,000
B) ($53,000)
C) $89,000
D) $175,000
E) $150,000
Correct Answer:
Verified
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