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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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