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Homework answers / question archive / 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
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