Gardner Furniture Company produces two kinds of chairs: an oak model and a chestnut wood model. The oak model sells for $60 and the chestnut wood model sells for $100. The variable expenses are as follows: Expected sales in units next year are: 5,000 oak chairs and 1,000 chestnut chairs. Fixed expenses are budgeted at $135,000 per year.
-The company's overall contribution margin ratio for the expected sales mix is:

Question

Gardner Furniture Company produces two kinds of chairs: an oak model and a chestnut wood model. The oak model sells for $60 and the chestnut wood model sells for $100. The variable expenses are as follows:  Expected sales in units next year are: 5,000 oak chairs and 1,000 chestnut chairs. Fixed expenses are budgeted at $135,000 per year.
-The company's overall contribution margin ratio for the expected sales mix is:

Quizplus · Accepted Answer

The Answer of Gardner Furniture Company produces two kinds of chairs: an oak model and a chestnut wood model. The oak model sells for $60 and the chestnut wood model sells for $100. The variable expenses are as follows:  Expected sales in units next year are: 5,000 oak chairs and 1,000 chestnut chairs. Fixed expenses are budgeted at $135,000 per year.
-The company's overall contribution margin ratio for the expected sales mix is:

Gardner Furniture Company Produces Two Kinds of Chairs: an Oak