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Brief Exercise 6-7 NoFly Corporation sells three different models of a mosquito “zapper.” Model A12 sells for $55 and ha...

Brief Exercise 6-7

NoFly Corporation sells three different models of a mosquito “zapper.” Model A12 sells for $55 and has variable costs of $40. Model B22 sells for $107 and has variable costs of $79. Model C124 sells for $414 and has variable costs of $307. The sales mix of the three models is A12, 55%; B22, 29%; and C124, 16%.

What is the weighted-average unit contribution margin? (Round answer to 2 decimal places, e.g. 15.50.)

Weighted-Average Unit Contribution Margin $

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Answer #1

Weighted-average unit contribution margin

=[(55-40)*55%] + [(107-79)*29%] + [(414-307)*16%]

= 8.25 + 8.12 + 17.12

= 33.49

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