Question: Calculate the weighted average unit contribution margin for the following problem. For example, assume that a gourmet food manufacturer has considered renting a booth at
For example, assume that a gourmet food manufacturer has considered renting a booth at a local mall to sell gift boxes of candy, nuts, and cookies during the holiday season. The fixed costs to rent and operate the booth would be $27,900. The unit contribution margins and sales mix anticipated by the company are as follows: Candy Nuts Cookies Unit Contribution Margin Sales Mix $1.50 50% $2.00 30% $1.00 20%
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