Fiesta Supply Company compiled the following data in order to assess the weighted average contribution margin per unit of two of the company's best-selling party items; the dome tent and the portable gazebo

Accounting Feb 23, 2021

Fiesta Supply Company compiled the following data in order to assess the weighted average contribution margin per unit of two of the company's best-selling party items; the dome tent and the portable gazebo.

1. What is the contribution margin of the dome tent?

2. What is the weighted-average contribution margin per unit?

	Dome Tent	Portable Gazebo	Total
Sales price per unit	$750	$1,000
Variable cost per unit	$530	$775
Contribution margin per unit	$220	$225
Specific sales mix	×4	×2	6
Contribution margin	$	$450	$1,330
Weighted-average contribution margin per unit			$

A) $880; $221.67

B) $530; $1,330

C) $775; $220

D) $389; $6

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