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Bezzdna [24]
3 years ago
9

Shugart sells two products. Product A sells for $88 with variable costs of $38. Product B sells for $143 with variable costs of

$47. The sales mix is 32% for products A while product B's is the remainder (or 100% less 32. What is the weighted average unit contribution margin rounding to the nearest penny? As always, do not use $ signs.
Business
1 answer:
andrew11 [14]3 years ago
7 0

Answer:

$81 approx

Explanation:

Contribution margin refers to sales receipts in excess of variable costs incurred. This represents contribution from a product earned which is after variable costs have been incurred.

<u>Product A</u>

Selling price per unit = $88

Variable cost per unit = $38

Contribution per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = $88 - $38 = $50

Similarly, for <u>product B</u>,

Contribution margin per unit = $143 - $47= $96

<u>Products         Weights            Contribution        Weighted contribution</u>

A                       0.32                    50                            16

B                       <u>0.68</u>                    96                            <u>65.28</u>

                         1.00                                                     81.28

Hence, weighted average contribution margin is $81.28 or $81 approx

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Consider three closed economies. In the first economy, households spend $0.50 of each additional dollar they earn and save the r
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Answer:

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Explanation:

This can be easily understood by going through some calculations in a spending multiplier formula.

WORKINGS

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Note: MPS can be abbreviated as Marginal propensity to save

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3 years ago
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aleksklad [387]
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X-treme Vitamin Company is considering two investments, both of which cost $22,000. The cash flows are as follows:
lukranit [14]

Answer:

0.88 years

1 year

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I hope my answer helps you

8 0
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Answer:

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Explanation:

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