Klikstop's new "Mark II" hearing aid includes the latest noise canceling technology. But the new Mark II seems set to compete with the company's own "Mark I" hearing aid. Klikstop sells the old Mark I for $336.99 each and makes it for variable cost of $230.25 each. Klikstop can make the new Mark II for a variable cost of $232.99 each and expects to sell them for $342.07 each. Klikstop expected to sell 39,700 Mark I hearing aids this year, and expects to sell 41,700 new Mark II hearing aids, if the new product is introduced--but then sales of the Mark I will likely fall to only 20,400 units this year. What is WEIGHTED CONTRIBUTION MARGIN for the new Mark II hearing aid?

Answer rating: 100% (QA)

To calculate the weighted contribution margin WCM for the new Mark II hearing aid we ... View the full answer