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Assume That the Following Information Is Available for Coldwrap,Inc Compute Contribution Margin Ratio for Each Product Line

Question 143

Essay

Assume that the following information is available for Coldwrap,Inc.:
 Light-  Medium-  Heavy-  weight  weight  weight  Down  Down  Down  Comforter  Comforter  Comforter  Sales $525,000$262,500$660,000 Variable expenses  Variable production $105,000$28,875$135,000 Variable advertising $15,750$5,250$33,000 Variable shipping $18,000$21,000$42,000\begin{array}{|l|r|r|r|}\hline &\text { Light- } & \text { Medium- } & \text { Heavy- } \\&\text { weight } & \text { weight } & \text { weight } \\&\text { Down } & \text { Down } & \text { Down } \\&\text { Comforter } & \text { Comforter } & \text { Comforter }\\ \hline \text { Sales } & \$ 525,000 & \$ 262,500 & \$ 660,000 \\\hline \text { Variable expenses } & & & \\\hline \text { Variable production } & \$ 105,000 & \$ 28,875 & \$ 135,000 \\\hline \text { Variable advertising } & \$ 15,750 & \$ 5,250 & \$ 33,000 \\\hline \text { Variable shipping } & \$ 18,000 & \$ 21,000 & \$ 42,000 \\\hline\end{array}

Compute contribution margin ratio for each product line.

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