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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

Accounting

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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