Question: Note that data typically changes for each new question, even when the same company or product name is used. Fernley Company produces two different products
Note that data typically changes for each new question, even when the same company or product name is used.
Fernley Company produces two different products with the following data for the most recent month:
|
| Table | Chair | Total |
| Selling price per unit | $600 | $200 |
|
| Variable cost per unit | $480 | $120 |
|
| Expected unit sales | 28,000 | 7,000 | 35,000 |
| Sales mix | 80% | 20% | 100% |
| Fixed costs |
|
| $2,800,000 |
Assume the sales mix remains the same at all levels of sales. The weighted average contribution margin per unit is :
-
$100
-
$88
-
$112
-
$200
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