Exhibit 21-9 Stella Signs sells two different products. Following are the monthly revenues and costs:

- Refer to Exhibit 21-9. Determine the total contribution margin ratio at the current sales mix.

Question

Exhibit 21-9 Stella Signs sells two different products. Following are the monthly revenues and costs:

- Refer to Exhibit 21-9. Determine the total contribution margin ratio at the current sales mix.

Quizplus · Accepted Answer

The total contribution margin is $28,500 + $16,000 = $44,500.
The total revenue is $50,000 + $20,000 = $70,000.
The total contribution margin ratio at the current sales mix is:
($44,500 ÷ $70,000) x 100% = 63.57%
Therefore, the correct answer is A) 53%, which is the closest option to the calculated ratio.

Exhibit 21-9 Stella Signs Sells Two Different Products