Big Mountain Sporting Goods has two divisions: Sporting Goods and Camping and Hunting Gear. The sales mix is 60% for Sporting Goods and 40% for Camping and Hunting Gear. Big Mountain incurs $2,660,000 in fixed costs. The unit contribution margin for Sporting Goods is $300, while for Camping and Hunting Gear it is $500. What is the weighted-average contribution margin per unit and break-even point in units for Big Mountain Sporting Goods?

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The Answer of Big Mountain Sporting Goods has two divisions: Sporting Goods and Camping and Hunting Gear. The sales mix is 60% for Sporting Goods and 40% for Camping and Hunting Gear. Big Mountain incurs $2,660,000 in fixed costs. The unit contribution margin for Sporting Goods is $300, while for Camping and Hunting Gear it is $500. What is the weighted-average contribution margin per unit and break-even point in units for Big Mountain Sporting Goods?

Big Mountain Sporting Goods Has Two Divisions: Sporting Goods and Camping