Course Contents SECOND CHANCE EXAM 1 QuestionS9 Timer Notes

Course Contents »... SECOND CHANCE EXAM 1 QuestionS9 Timer Notes K Company estimates the following for its three products for 2018: Product Units Sold 7,300 36,700 21,250 SP $36.68 10.94 21.18 VC $28.20 6.26 8.56 Fixed costs in 2018 are expected to be $665,000. What is the expected weighted average contribution margin per unit in 2018? Submit Answer Tries 0/3 0 Communication Blocked 9

Solution

Product A Product B Product C Total Units Sold 7300 36700 21250 65250 Selling price per unit 36.68 10.94 21.18 Variable cost per unit 28.2 6.26 8.56 Sales 267764 401498 450075 1119337 Less: Variable cost 205860 229742 181900 617502 Contribution margin 61904 171756 268175 501835 Weighted contribution margin per unit: Total contribution/ Total units $ 501835 /65250 = $ 7.69 per unit