Darth Company sells three products. Sales and contribution margin ratios for the three products follow:
| Product X | Product Y | Product Z |
Sales in dollars | $32,000 | $52,000 | $112,000 |
Contribution margin ratio | 57% | 52% | 27% |
Given these data, the contribution margin ratio for the company as a whole would be: (Round your intermediate calculations to 2 decimal places. Round your answer to whole percentage.) |
| Product X | Product Y | Product Z | Total |
Sales in dollars (a) | $32,000 | $52,000 | $112,000 | $196,000 |
Contribution margin ratio (b) | 57% | 52% | 27% | |
Contribution margin (a) × (b) | $18,240 | $27,040 | $30,240 | $75,520 |
Contribution margin ratio for the company = Total contribution margin for the company ÷ Total sales for the company = $75,520 ÷ $196,000 = 0.39
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