Refer to Exercise E21- 21. Assume the sales mix shifted to 50% for each product. Calculate the
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Refer to Exercise E21- 21. Assume the sales mix shifted to 50% for each product. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company.
E21- 21
Spears Company sells two products, Alpha and Omega, with a sales mix of 40% and 60%, respectively. Alpha has a contribution margin per unit of $ 10, and Omega has a contribution margin per unit of $ 15. The company sold 500 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Related Book For 
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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