Question
Amadeus Manufacturing makes and sells three component products used in conventional conveyor belt and automated transport systems for other manufacturing firms. Their three products, A,
Amadeus Manufacturing makes and sells three component products used in conventional conveyor belt and automated transport systems for other manufacturing firms. Their three products, A, B, and C, are sold for $ 90, $ 50, and $ 80, respectively. Their annual fixed costs are $ 63000. Amadeus incurs both variable manufacturing costs and variable selling costs related to their products. The variable costs, both manufacturing and selling, are $ 50 for component A, $ 15 for component B, and $ 42 for component C. Amadeus has experienced the following mix of product sales. On average, for every 3 units of A, it sells 4 units of B, and 5 units of C. Using the package approach, what is the average contribution margin ratio for Amadeus?
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