Question

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

	A	B	C
Revenue	$67,048	$24,004	$39,387
Total variable costs	42,364	17,408	15,656

Fixed costs in 2018 are expected to be $18,600. What is the expected weighted average contribution margin rate in 2018?

Answer 1

	A	B	C	total
sales	67048	24004	39387	130439
% of sales as total sales	51.40%	18.40%	30.20%	100%
total variable cost	42364	17408	15656	75428
contribution margin	24684	6596	23731	55011
% contribution margin of total contribution margin	44.87%	11.99%	43.14%	100%
weight average contribution margin rate = % of sales in total sales* % of contribution margin in total contribution margin	23.06%	2.21%	13.03%	38.30%