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Natali5045456 [20]
3 years ago
12

Archoid's Flowering Plants provides the following information for the month of May: Actual Budget Tulips Geraniums Tulips Gerani

ums Sales in units 4,420 4,080 4,950 3,300 Contribution margin per unit $12 $19 $11 $21 What is the budgeted contribution margin per composite unit for the budgeted mix?
Business
1 answer:
gogolik [260]3 years ago
4 0

Answer:

Contribution margin= $15

Explanation:

Giving the following information:

Sales May in units:

Budget:

Tulips= 4,950

Geraniums= 3,300

Actual:

Tulips= 4,420

Geraniums= 4,080

Contribution margin:

Budget:

Tulips= $11

Geraniums= $21

Actual:

Tulips= $12

Geraniums= $19

We need to calculate the budgeted contribution margin per composite unit.

First, we need to calculate the percentage of sales for each plant.

Total units= 8250 units

Tulips= 4950/8250= 0.6

Geranius= 3300/8250= 0.4

Contribution margin= (0.6*11)+(0.4*21)= $15

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3 years ago
The circles shown to the right are similar but not exactly the same. this is an example of
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