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Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected sales: Sale of sprinklers 460,000 units at $26.50 Sale of valves
Waterways has a sales mix of sprinklers, valves, and controllers as follows.
Annual expected sales: | ||
Sale of sprinklers | 460,000 units at $26.50 | |
Sale of valves | 1,480,000 units at $11.20 | |
Sale of controllers | 60,000 units at $42.50 |
Variable manufacturing cost per unit | ||||
Sprinklers | $13.96 | |||
Valves | $7.95 | |||
Controllers | $29.75 | |||
Fixed manufacturing overhead cost (total) | $760,000 |
Variable selling and administrative expenses per unit: | ||||
Sprinklers | $1.30 | |||
Valves | $0.50 | |||
Controllers | $3.41 | |||
Fixed selling and administrative expenses (total) | $1,600,000
Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products. (Round answer to two decimal places, e.g. 5.25.) |
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