Question
Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line. Rotomolded Composite Sales
Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line.
| Rotomolded | Composite | ||||
| Sales price/unit | $800 | $2,000 | |||
| Variable costs/unit | $480 | $1,340 |
The companys fixed costs are $655,720. An analysis of the sales mix identifies that rotomolded kayaks make up 80% of the total units sold.
(a)
Determine the weighted-average unit contribution margin for Current Designs.
| Weighted-average unit contribution margin | $ Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line.
The companys fixed costs are $655,720. An analysis of the sales mix identifies that rotomolded kayaks make up 80% of the total units sold. (a) Determine the weighted-average unit contribution margin for Current Designs.
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