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Faune Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division. The results of operations for the most recent quarter are:
Bedroom Division
Dining Room Division
Total
Sales
$500,000
$750,000
$1,250,000
Variable costs
225,000
450,000
675,000
Contribution margin
$275,000
$300,000
$575,000
(a) Determine the company's sales mix.
(b) Determine the company's weighted-average contribution margin ratio.
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