Question: Bradley Manufacturing manufactures two styles of watches the Digital and

Bradley Manufacturing manufactures two styles of watches— the Digital and the Classic. The following data pertain to the Digital:
Variable manufacturing cost.......................................................................................... $ 125
Variable operating cost................................................................................................. $ 35
Sale price....................................................................................................................... $ 225
Bradley’s monthly fixed expenses total $ 195,000. When Digitals and Classics are sold in the mix of 7: 3, respectively, the sale of 2,100 total watches results in an operating income of $ 36,000. Compute the contribution margin per watch for the Classic.


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  • CreatedAugust 27, 2014
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