Question

# BM Company sells two products, X and Y. Product X sells for \$20 per unit with...

BM Company sells two products, X and Y. Product X sells for \$20 per unit with variable costs of \$11 per unit. Product Y sells for \$30 per unit with variable costs of \$16 per unit. During this period, BM sold 16,000 units of X and 4,000 units of Y, making Total Revenue of \$440,000, and after subtracting variable cost got Total Contribution Margin of \$200,000, and after subtracting Total Fixed Cost of \$110,000, earned Operating Profit of \$90,000. The weighted-average unit contribution margin is: (rounded)

 Total Units sold = 16000+4000 =20000 units % of X = 16000/20000 =80% X of Y = 4000/20000 =20% Contribution margin per unit = sales price - variable cost Contribution margin of X = \$20-11 =\$9 Contribution margin of Y = 30-16 =\$14 Weighted average unit contribution margin = (weight of X * contribution margin of X)+(weight of Y * contribution margin of Y) = (0.80*9)+(0.20*14) =\$10 Correct Answer = \$10 NOTE: ASK YOUR QUERIES.PLEASE DO UPVOTE

#### Earn Coins

Coins can be redeemed for fabulous gifts.