K-Too Everwear Corporation manufactures two styles of mountain climbing shoes for women: Regular and
K-Too Everwear Corporation manufactures two styles of mountain climbing shoes for women: Regular and fashion styles. A pair of regular style shoes sells for $135, while the fashion style shoes sell for $160 per pair. The variable cost per pair for regular shoes is $38.94, and that for fashion style shoes is $41.5. K-Too Everwear has fixed costs of $1,800,000. K-Too Everwear has the sales mix of 70% and 30% for regular- and fashion-style shoes, respectively. What is K-Too Everwear’s weighted average contribution margin ratio? Please round your calculations to 4 decimal places and choose the closest answer.
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