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Alyssa manufactures two styles of watches; the Digital and the Classic. The following data pertain to the Digital: $ 100 Variable manufacturing cost............ Variable operating
Alyssa manufactures two styles of watches; the Digital and the Classic. The following data pertain to the Digital: $ 100 Variable manufacturing cost............ Variable operating cost. 40 200 Sale price...................... Alyssa's monthly fixed expenses total $185,000. When Digitals and Classics are sold in the mix of 8:2, respectively, the sale of 2,250 total watches results in an operating income of $40,000. Compute the contribution margin per watch for the Classic. First, rearrange the formula to compute the target sales in units to solve for the weighed-average contribution margin per unit. Weighted average CM per unit Now complete the following table to help you solve for the contribution margin per watch for Classic. Digital Classic Total Deduct: Weighted average contribution margin per unit The contribution margin per watch for the Classic is $
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