Question

CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Brief Exercise 6-7 NoFly Corporation sells three different models of a mosquito "zapper. Model A12 sells for $57 and has variable costs of $43. Model B22 sells for $109 and has variable costs of $72. Model C124 sells for $407 and has variable costs of $303. The sales mix of the three models is A12, 55%; B22, 30%, and C124, 15%. What is the weighted average unit contribution margin? (Round answer to 2 decimal places, e.g. 15.50.) Weighted Average Unit Contribution Margins Click If you would like to Show Work for this questions Open Show Work

Answer 1

Weighted avearge contribution margin per unit S 34.40 Notes: Model A12 Model B22 Model C124 Total 109 407 Sales price per unit Variable Cost per unit Contribution margin per unit Percentage of sales Mix Weighted Contribution margin per unit - 43 14 55% 7.701 721 37 30% 11.10 303 104 15% 15.60 34.40| Contribution margin per unit = Sales price per unit - Variable cost per unit Weighted Contribution margin per unit = Contribution margin per unit * Sales mix percentage of sales