238 Managerial 2 Homework Problem 1. Jenkins company sells three different laundry baskets. The controller has prepared the following estimates for next year Selling Price $12 $20 $30 Variable Costs Estimated sales mix Estimated Fixed Costs $1,590,000 what is the weighted average contribution margin %? How many of each of the laundry baskets does Jenkins have to sell for the company to make 60% 30% 10% $2,000,000? Problem 2 Aisha Exterminating Company performs a wide variety of pest control services. Aisha, the owner, has been examining the following forecasts for 2013. Type of Service Expected $ volume Contribution Margin % Termites Lawn Pests $480,000 360,000 360,000 60% 50 70 Interior Pests Total Fixed Costs are expected to be $560,000 1) what is the weighted average contribution margin %? 2) What profit does Aisha expect? 3) The actual sales mix turned out to be 20% termites, 30% lawn pests and 50% interior pests. Total actual sales were $1,200,000 and total fixed costs were $560,000. Determine the actual weighted-average contribution margin and the net income