X Company estimates the following for its three products, A, B, and C, for 2018:
A | B | C | |
Revenue | $35,376 | $24,709 | $48,698 |
Total variable costs | 20,955 | 16,758 | 19,952 |
Fixed costs in 2018 are expected to be $17,400. What is the
expected weighted average contribution margin rate in 2018?
Weighted-average contribution margin percentages for each product. | A | B | C= A-B |
Services | Revenue | Total variable costs | Contribution Margin = Revenue - Variable cost |
A | $35,376.00 | $20,955.00 | $14,421.00 |
B | $24,709.00 | $16,758.00 | $7,951.00 |
C | $48,698.00 | $19,952.00 | $28,746.00 |
Total | $108,783.00 | $57,665.00 | $36,697.00 |
WACMR = Total contribution margin of all products/ Total sales revenue of all products | |||
Contribution Margin % = $36,697/108783 | 33.73% |
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