Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Garden Duty produces shovels and rakes. Sales and costs for the most recent year are indicated below: Shovels Rakes Total Units 8,000 20,000 28,000 Sales

Garden Duty produces shovels and rakes. Sales and costs for the most recent year are indicated below:

Shovels Rakes Total

Units 8,000 20,000 28,000

Sales revenue $160,000 $40,000 $200,000

Variable costs 98,000 18,000 116,000

Fixed costs 28,000 12,000 40,000

Profit $ 34,000 $10,000 $ 44,000

The number of units and selling price per unit of both products appears to be stable for the foreseeable future. How much is the weighted average contribution margin per unit?

A. $4.43

B. $3.00

C. $1.57

D. $0.42

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Australia And New Zealand Edition

Authors: Jerry J. Weygandt

11th Edition

1119668654, 978-1119668657

More Books

Students also viewed these Accounting questions

Question

=+90 percent of all oil refineries) into several smaller companies

Answered: 1 week ago