Burdon Snowboards sells two models of snowboards: the Mens Dominator and the Ladies Luxury. Information on the

Question:

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.
REQUIRED
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?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...