Madison Corporation sells three products (M, N, and O) in the following sales mix: 3:1:2. Unit price and cost data are: Total fixed costs are $340,000. The contribution margin per composite unit for the current sales mix (round to the nearest cent) is:
A) $17.00.
B) $ 5.67.
C) $20.00.
D) $37.00.
E) $25.00.

Question

Madison Corporation sells three products (M, N, and O) in the following sales mix: 3:1:2. Unit price and cost data are:  Total fixed costs are $340,000. The contribution margin per composite unit for the current sales mix (round to the nearest cent) is:
A) $17.00. 
B) $ 5.67. 
C) $20.00. 
D) $37.00. 
E) $25.00.

Quizplus · Accepted Answer

11eaadfd_cd4c_e053_95d8_bbfc0b26aedf_TB6948_00

Madison Corporation Sells Three Products (M, N, and O) in the Following