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The Case Company produces two types of phone protective cases: the plain model and the fancy model. Last year, Case sold 100,000 plain cases and

The Case Company produces two types of phone protective cases: the plain model and the fancy model. Last year, Case sold 100,000 plain cases and 50,000 fancy cases. Also given:

Total fixed costs are $70,000.

: Plain Fancy

Selling price/unit $13.00 $16.00

Variable cost/unit 5.00 7.00

What is the weighted average CM (contribution margin) per unit (using sales mix as the weights)?

a.

$5.33

c.

$4.33

b.

$3.00

d.

$8.33

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