Answer the following questions using the information below:
Hobart Garden Centre provides the following information for the month of May:
$$\begin{array} {c}
&&&&&&&&&&&&&&&& { \text { Actual } } &&&&&&& & { \text { Budget } } \
\end{array}\
\begin{array} { l r r r r }
& \text { Tulips } & \text { Geraniums } & \text { Tulips } & \text { Geraniums } \
\text { Sales in urits } & 1950 & 1800 & 2250 & 1500 \
\text { Contribution margin per urit } & \$ 11 & \$ 18 & \$ 10 & \$ 20
\end{array}$$
-What is the budgeted contribution margin per composite unit for the budgeted mix?

Question

Answer the following questions using the information below:
Hobart Garden Centre provides the following information for the month of May:
 $$\begin{array} {c}
&&&&&&&&&&&&&&&& { \text { Actual } } &&&&&&& & { \text { Budget } } \
\end{array}\
\begin{array} { l r r r r } 
& \text { Tulips } & \text { Geraniums } & \text { Tulips } & \text { Geraniums } \
\text { Sales in urits } & 1950 & 1800 & 2250 & 1500 \
\text { Contribution margin per urit } & \$ 11 & \$ 18 & \$ 10 & \$ 20
\end{array}$$
-What is the budgeted contribution margin per composite unit for the budgeted mix?

Quizplus · Accepted Answer

By calculating the weighted average contribution margin per unit for the budgeted mix, we get $14.00 ($16.50 x 0.60 + $12.00 x 0.40). Therefore, the best choice is B as it provides the correct budgeted contribution margin per composite unit.

Answer the Following Questions Using the Information Below: Hobart Garden

Answer the Following Questions Using the Information Below:
Hobart Garden