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I need help ASAP! Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labour;
I need help ASAP!
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labour; hence, there is no traceable fixed costs. Common fixed costs equal $17 400. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price $40 $70 Variable costs $30 $42 Number of units 1 200 400 The tax rate is 28%. Calculate the weighted average contribution margin Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labour; hence, there is no traceable fixed costs. Common fixed costs equal $17 400. Parkers accountant has begun to assess the profitability of the two lines and has gathered the following data for last year:
The tax rate is 28%.
Calculate the weighted average contribution margin.
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