Chapter M:6 Questions

1.

Springsteel Company sells two products, Gamma and Delta, with a sales mix of 30% and 70%. respectively. Gamma has a contribution margin per unit of $26, and Delta has a contribution margin per unit of $13. The company sold 1,200 total units in September' Calculate the total amount each product contributed to the coverage of xed costs and the total contribution margin tor the company. Select the formula labels and calculate the contribution margin for Gamma and Delta, then calculate the total contribution margin for the company. x = Contribution margin Gamma X = Delta x = D at a Table Service Revenue $200 per service call Variable Costs 20 per service call Fixed Costs 27,500 per month Hank's Helpers provides locksmith services. One type of service call is to evaluate private residences for security concerns and make recommendations for a safety plan. Use the data below to determine the company's total contribution margin, contribution margin per service call, and contribution margin ratio when 160 service calls are made in the month of June. lick the icon to view the data) Select the formula labels needed to compute the contribution margin. Then, complete the table to calculate the contribution margin per service call, then the company's total contribution margin. Per call Contribution Margin