ACCT4210Cost and Managerial Accounting

Problem 2: CVP analysis (10 points total)

DeKalb Corporation produces three products, A, B and C. The normal volume is 350 units of A, 140 units of B and 210 units of C. The price per unit is $5, $7, $10, for products A, B, and C, respectively. The variable cost per unit is $2, $3, $4, for products A, B, and C. respectively. The total fixed costs are $2,400.

What is the weighted average contribution margin per unit?