Question

X Company estimates the following for its three products, A, B, and C, for 2018:

A B C   

Revenue $32,130 $28,820 $79,422

Total variable costs 23,275 19,564 30,442

Fixed costs in 2018 are expected to be $19,800. What is the expected weighted average contribution margin rate in 2018?

Answer 1

	Particulars	A	B	C	Total
	Revenue	32130	28820	79422	140372
less	Variable cost	23275	19564	30442	73281
	Contribution	8855	9256	48980	67091
	% as contribution	2036.65	1943.76	27918.6	31899.01
		8855*23%	9256*21%	48980*57%
	Weighted Average contribtion margin rate	23	31899/140372
	Working Notes
	Total sales of Company	140372	(32130+28820+79422)
	% of A	23	(32130/140372)*100
	% of B	21	(28820/140372)*100
	% of C	57	(79422/140372)*100