CVP, revenue mix. (J. Watson) Burdon Snowboards sells two models of snowboardsthe Mens Dominator and the Ladies
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CVP, revenue mix. (J. Watson) Burdon Snowboards sells two models of snowboards—the Men’s Dominator and the Ladies’ Luxury. Information on the two models of snowboards follows:
Of Burdon’s total sales, 70% are for the Men’s Dominator Model. The company’s annual fixed costs are $180,000.
REQUIRED 1. Compute the unit contribution margin for each model of snowboard.
2. Compute the weighted-average contribution margin assuming a constant sales mix.
3. If the company’s target operating income is $115,000, how many units of each model of snowboard must be sold to achieve the company’s goals?LO1
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 9780135004937
5th Canadian Edition
Authors: Charles T. Horngren, Foster George, Srikand M. Datar, Maureen P. Gowing
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