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HighTide Canvas Company currently makes and sells two model sizes of a boat cover. Data applicable to the current operation are summarized in the following
HighTide Canvas Company currently makes and sells two model sizes of a boat cover. Data applicable to the current operation are summarized in the following columns labeled Current Operation. Management is considering adding a Medium model to its current Large and Small models. Expected data if the new model is added are shown in the following columns labeled Proposed Expansion: Current Operation Proposed Expansion Large Small Large Small Medium Selling price per unit $ 27 $ 14 $ 27 $ 14 $ 15 Variable expenses per unit 10.8 7.5 10.8 7.5 8.5 Annual sales volumeunits 10,500 21,000 7,000 17,000 8,000 Fixed expenses for year Total of $ 67,000 Total of $ 89,000 Required: Calculate the company's current total contribution margin and the current average contribu
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