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kolbaska11 [484]
3 years ago
5

LO 3.4A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell they sell two units of M

odel 202. Sales and cost information for the two products is shown. What is the contribution margin for a composite unit based on the sales mix?
$14
$21
$35
$56
Business
1 answer:
dexar [7]3 years ago
6 0

Answer:

The sales mix is 1:2.

                           Model 101          Model 102

Selling Price                       21             56

Variable Cost              -14            -35

Contribution Per Unit       7               21

Multiply Sales Mix Ratio       1               2

Weighted Contribution       7                      42

Now add the weighted Contribution to compute Contribution margin per composite unit which is 7+42=$49

Explanation:

I assumed that the cost and selling price here for Model 101 is $14 and $21 respectively. Similarly the cost and selling price of Model 102 is $35 and $56 respectively.

Remember that Contribution margin per composite unit means that we will earn 49 dollars(combined contribution of sales mix) if we sell the sale mix of Model 101 and 102 which is 1:2.

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Answer:

63.54% (Approx)

Explanation:

The computation of the budgeted percentage contribution margin ratio is shown below:-

For computing the contribution margin ratio firstly we need to calculate the contribution margin in dollars

Contribution margin = Sales - Variable cost

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Contribution margin ratio = Contribution margin ÷ Sales

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Answer:

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Explanation:

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belka [17]

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When mcdonald’s introduced its low-fat mclean deluxe hamburger, it used __________ to avoid direct competition with wendy’s and
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Monte Vista uses the perpetual inventory system. At the beginning of the quarter, Monte Vista has $44,000 in inventory. During t
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Answer:

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