Question
Molly runs a shop with two products. Product A has a unit contribution margin of $300 and Product B has a unit contribution margin of
Molly runs a shop with two products. Product A has a unit contribution margin of $300 and Product B has a unit contribution margin of $100. In January she sold a total of 2,000 units with Product A making up 20% of total sales and Product B making up 80% of total sales. In February she sold 1,800 units, with Product A making up 30% of sales and Product B making up 70% of sales. In March she sold 1,500 units, with Product A making up 50% and Product B representing 50%. Fixed costs and unit contribution margins remained constant from January through March. During which month was Mollys net income the highest?
I know the answer is March.
I want to know how to get to the answer. Please show the steps.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started