Question

Kenisha manufactures two styles of watches—the Digital and the Classic. The following data pertain to the Digital:
Variable manufacturing cost........................................................................ $120
Variable operating cost............................................................................... 30
Sales price.................................................................................................... 200
Kenisha’s monthly fixed expenses total $190,000. When Digitals and Classics are sold in the mix of 7:3, respectively, the sale of 2,000 total watches results in an operating income of $60,000. Compute the contribution margin per watch for the Classic.


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  • CreatedApril 30, 2015
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