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Homework answers / question archive / Papa's Pastries sells regular donuts and large donuts

Papa's Pastries sells regular donuts and large donuts

Accounting

Papa's Pastries sells regular donuts and large donuts. For every six regular donuts sold the manager at Papa's Pastries sell four large donuts.

 

 

Regular

Donuts

Large

Donuts

Total

Sales price per unit

$15

$20

 

Less: Variable cost per unit

$5

$9

 

Contribution margin

$10

$11

 

Sales mix

× 6

× 4

10

Weighted-average contribution margin per unit:

 

 

 

 

 

 

 

 

Calculate the weighted average contribution margin per unit.

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