Fiesta Supply Company compiled the following data in order to assess the weighted average contribution margin per unit of two of the company's best-selling party items;the dome tent and the portable gazebo.
1.What is the contribution margin of the dome tent?
2.What is the weighted-average contribution margin per unit?

Question

Quizplus · Accepted Answer

A)
Contribution margin per unit = $220 × Specific sales mix = 4 = Contribution margin of dome tent =$880
Contribution margin of dome tent = $880 + Contribution margin of portable gazebo = $450 = total of both contribution margins = $1330.Total of both contribution margins = $1,330 ÷ Total specific sales mix = 6 = Weighted-average contribution margin per unit = $221.67.

Fiesta Supply Company Compiled the Following Data in Order to Assess