Product contribution report Below are 1993 product cost and sales data for the Home Appliance Division of the Morgan Home Products Company. The division manufactures two electric mixers for homes and commercial restaurant kitchen use. The model 300 is a heavy duty unit with a larger motor and stainless steel fittings and housing. The model 250 is lighter and intended for typical home kitchen use.

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Sales in units Sales price... Unit variable costs: Manufacturing Marketing... Distribution Administrative Fixed costs directly identifiable with products: Manufacturing Marketing... Distribution Administration Total division expenses Model 250 Product Model 300 1,000 $ 70 25 2,000 $ 40 0531 2632 $12,000 $8,000 6,000 4,000 3,000 3,000 5,000 6,000 $22,000