Question

NoFly Corporation sells three different models of a mosquito “zapper.” Model A12 sells for $50 and...

NoFly Corporation sells three different models of a mosquito “zapper.” Model A12 sells for $50 and has variable costs of $35. Model B22 sells for $100 and has variable costs of $70. Model C124 sells for $400 and has variable costs of $300. The sales mix of the three models is A12, 60%; B22, 15%; and C124, 25%.

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

Weighted-Average Unit Contribution Margin

Homework Answers

Answer #1
Ans. Model A12 Model B22 Model C124
Selling price per unit $50.00 $100.00 $400.00
Less: Variable cost per unit -$35.00 -$70.00 -$300.00
Contribution margin per unit $15.00 $30.00 $100.00
Particulars Contribution margin per unit (a) Sales mix (b) Contribution margin (a*b)
Model A12 $15.00 0.60 $9.00
Model B22 $30.00 0.15 $4.50
Model C124 $100.00 0.25 $25.00
Total 1.00 $38.50
Weighted contribution margin = Total contribution margin / Total sales mix
$38.50 / 1.00
$38.50 per unit
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