Fields corporation has two divisions; sporting goods and sports gear. the sales mix is 65% for sporting goods and 35% for sports gear. fields incurs $2,220,000 in fixed costs. the contribution margin ratio for sporting goods is 30%, while for sports gear it is 50%. the break-even point in dollars is

$6,000,000

Explanation: This could be calculated as follows :-

sales for sporting goods  = 65% of $2,220,000

                                            = $ 1,443,000

sales for sports gear = 35% of $2,220,000

                                    = $ 777,000

Now, calculating for contribution :-

Sporting goods = 30% of $ 1,443,000

                     = $ 432900

Sports gear = 50% of 777000

                      =$ 388500

Therefore :-

total contribution margin = $388500 + 433900 = $ 821400

overall margin contribution = (821400/2220000)*100 = 37%

Break even point = 2220000/0.37 = $6,000,000

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