Jamal & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products

Question:

Jamal & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows:

Plain Fancy $35.00 24.50 Unit selling price Variable cost per unit $20.00 12.00

Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000.
62. The weighted-average unit contribution margin is:
A. $4.80.
B. $9.00.
C. $9.25.
D. $17.00.
E. an amount other than those above.

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...