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Sherwood Corporation sells two types of high-end entertainment systems; one is designed more for audio applications and the other for video applications. Sherwood incurs $187,500

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Sherwood Corporation sells two types of high-end entertainment systems; one is designed more for audio applications and the other for video applications. Sherwood incurs $187,500 in fixed costs. Per unit data on the two products is presented blow: Unit data Audio system Video system Selling price $1,500 $2,700 Variable costs 900 2,000 Contribution margin $ 600 $700 Sales mix 75% 25% 1. The weighted-average contribution margin is: O a. a. $625 O b. b. $675 O C. C. $1,300

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