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KLM Pty Ltd is a company producing microfibre textile products. These products are divided into three categories with the following details: Expected total units Sales
KLM Pty Ltd is a company producing microfibre textile products. These products are divided into three categories with the following details: Expected total units Sales Revenue per Unit Variable Cost per Unit Towels Clothing Homewares 150.000 600.000 250.000 $40 $20 $50 $10 $16 $40 Fixed costs in the business relate to salaries and wages and depreciation and come to $980,000. The business is interested in analysing several potential outcomes based on the above information. a) b) Based on the above information, calculate the contribution margin per unit for each product. Fill in the appropriate squares. Contribution Margin per Unit Towels Clothing forewares (3 items) Based on the above information, compute the weighted average contribution margin (WACM) for the three products in their expected mix. Enter the WACM in the box below. Working Space
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