# Spears Company sells two products, Alpha and Omega, with a sales mix of 40% and 60%, respectively.

## Question:

Spears Company sells two products, Alpha and Omega, with a sales mix of 40% and 60%, respectively. Alpha has a contribution margin per unit of $ 10, and Omega has a contribution margin per unit of $ 15. The company sold 500 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company.

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...

Fantastic news! We've Found the answer you've been seeking!

## Step by Step Answer:

**Related Book For**

## Horngrens Financial and Managerial Accounting

**ISBN:** 978-0133255584

4th Edition

**Authors:** Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura