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

CALCULATION OF CONTRIBUTION MARGIN PARTICULARS Model A12 Model B 22 Model C 124 Selling Price Per Unit= $                           59 $                103 412 Less: Variable Cost Per unit $                           35 $                  74 308 Contribution Margin Per Unit (A) $                           24 $                  29 $                 104 X Sales Mix Percentage = (B) 55% 30% 15% (Contr. Margin X Sales Mix Per centage) = $                     13.20 $              8.70 $             15.60 Weighted Average CM Per unit $                     37.50 Answer = $ 37.50

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