Question: Burdon Snowboards sells two models of snowboards the Men s Dominator

Burdon Snowboards sells two models of snowboards: the Men’s Dominator and the Ladies’ Luxury. Information on the two models of snowboards follows:
Of Burdon’s total sales, 70% are for the Men’s Dominator model. The company’s annual fixed costs are $180,000.
1. Compute the unit contribution margin for each model of snowboard.
2. Compute the weighted-average contribution margin assuming a constant sales mix.
3. If the company’s target operating income is $115,000, how many units of each model of snowboard must be sold to achieve the company’s goals?

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  • CreatedJuly 31, 2015
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