Winters Company sells three products. Sales and contribution margin ratios for the three products follow:
$$\begin{array} { l c c c }
& \text { Product A } & \text { Product B } & \text { Produet C } \
\text { Sales in dollars } & \$ 20,000 & \$ 40,000 & \$ 100,000 \
\text { Contribution margin ratio } & 45 \% & 40 \% & 15 \%
\end{array}$$
Given these data, the contribution margin ratio for the company as a whole would be:
A) 25%.
B) 75%.
C) 33.3%.
D) Cannot determine with the information given.

Question

Winters Company sells three products. Sales and contribution margin ratios for the three products follow:
$$\begin{array} { l c c c } 
& \text { Product A } & \text { Product B } & \text { Produet C } \
\text { Sales in dollars } & \$ 20,000 & \$ 40,000 & \$ 100,000 \
\text { Contribution margin ratio } & 45 \% & 40 \% & 15 \%
\end{array}$$
Given these data, the contribution margin ratio for the company as a whole would be:
A) 25%.
B) 75%.
C) 33.3%.
D) Cannot determine with the information given.

Quizplus · Accepted Answer

The Answer of Winters Company sells three products. Sales and contribution margin ratios for the three products follow:
$$\begin{array} { l c c c } 
& \text { Product A } & \text { Product B } & \text { Produet C } \
\text { Sales in dollars } & \$ 20,000 & \$ 40,000 & \$ 100,000 \
\text { Contribution margin ratio } & 45 \% & 40 \% & 15 \%
\end{array}$$
Given these data, the contribution margin ratio for the company as a whole would be:
A) 25%.
B) 75%.
C) 33.3%.
D) Cannot determine with the information given.

Winters Company Sells Three Products Given These Data, the Contribution Margin Ratio for the Company