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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
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