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Problem 2 Aisha Exterminating Company performs a wide variety of pest control services. Aisha, the owner, has been examining the following forecasts for 2013. Type
Problem 2 Aisha Exterminating Company performs a wide variety of pest control services. Aisha, the owner, has been examining the following forecasts for 2013. Type of Service Expected $ volume Contribution Margin % 50 Termites $480,000 60% Lawn Pests 360,000 Interior Pests 360,000 70 Total Fixed Costs are expected to be $560,000 1) What is the weighted average contribution margin %? 2) What profit does Aisha expect? 3) The actual sales mix turned out to be 20% termites, 30% lawn pests and 50% interior pests. Total actual sales were $1,200,000 and total fixed costs were $560,000. Determine the actual weighted average contribution margin and the net income
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