Question
Tonto Rain Shields sells 3 types of umbrellas. Umbrella A sells for $20 and has variable cost of $9.00 per unit. Umbrella B sells
Tonto Rain Shields sells 3 types of umbrellas. Umbrella A sells for $20 and has variable cost of $9.00 per unit. Umbrella B sells for $17.00 and has variable cost of $12.00 per unit. Umbrella C sells for $9.00 and has variable costs of $6.00 per unit. The company sells in a mix of 2 units of A, 3 units of B, and 5 units of C. What is the weighted average contribution margin per unit for Tonto? Suppose the company's total fixed costs are $10,400. In order to break even, it needs to sell units of Umbrella A. units of Umbrella B, and units of Umbrella C.
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Organic Chemistry
Authors: John McMurry
7 Edition
978-0495112587, 0495112585
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