What is the segment margin ratio

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Problem - Refer to the Pennington Products information below.

Pennington Products has two product lines: R-100 and R-200. Revenue and cost information for each of the product lines are as follows:

 

R-100

R-200

Selling price per unit

$45

$60

Variable costs per unit

$15

$26

Traceable fixed expenses

$250,000

$360,000

Pennington has common fixed expenses of $250,000 per year. Last year, the company produced and sold 30,000 units of R-100 and 20,000 units of R-200.

What is the segment margin ratio of the R-200 product line?

Reference no: EM131571749

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