Brief Exercise 19-7 NoFly Corporation sells three different models of a mosquito

Question

Brief Exercise 19-7 NoFly Corporation sells three different models of a mosquito "zapper." Model A12 sells for $59 and has variable costs of $35. Model B22 sells for $103 and has variable costs of $74. Model C124 sells for $412 and has variable costs of $308. The sales mix of the three models is A12, 55%; B22, 309, and C124, 15%. What is the weighted-average unit contribution margin? (Round answer to 2 decimal places, e.g. 15.50.) Weighted-Average Unit Contribution Margin Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Answer

Weighted average contribution margin :

Weighted average contribution margin = (24*55%)+(29*30%)+(104*15%)

=13.20+8.70+15.60

=37.50

Hence, Weighted average contribution margin is $37.50

Model A12 Model B22 Model C124 Sale price 59 103 412 Variable costs 35 74 308 Contribution mergin 24 29 104

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