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Garden Duty Produces Shovels and Rakes The Number of Units and Selling Price Per Unit of the Most

Question 145

Multiple Choice

Garden Duty produces shovels and rakes. Sales and costs for the most recent year are indicated below:  Shovels  Rakes  Total  Units 8,00020,00028,000 Sales revenue $160,000$40,000$200,000 Variable costs 98,00018,000116,000 Fixed costs 28,00012,00040,000 Profit $34,000$10,000$44,000\begin{array}{lrrr}&\text { Shovels } &\text { Rakes }& \text { Total }\\\hline\text { Units } & 8,000 & 20,000 & 28,000 \\\text { Sales revenue } & \$ 160,000 & \$ 40,000 & \$ 200,000 \\\text { Variable costs } & 98,000 & 18,000 & 116,000 \\\text { Fixed costs } & 28,000 & 12,000 & 40,000 \\\hline \text { Profit }&\$34,000&\$10,000&\$44,000\end{array} The number of units and selling price per unit of both products appears to be stable for the foreseeable future. How much is the weighted average contribution margin per unit?


A) $4.43
B) $1.57
C) $0.42
D) $3.00

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