Ask Question
13 June, 08:35

Archoid's Flowering Plants provides the following information for the month of May: Actual Budget Tulips Geraniums Tulips Geraniums Sales in units 4,420 4,080 4,950 3,300 Contribution margin per unit $12 $19 $11 $21 What is the budgeted contribution margin per composite unit for the budgeted mix?

+3
Answers (1)
  1. 13 June, 11:43
    0
    Contribution margin = $15

    Explanation:

    Giving the following information:

    Sales May in units:

    Budget:

    Tulips = 4,950

    Geraniums = 3,300

    Actual:

    Tulips = 4,420

    Geraniums = 4,080

    Contribution margin:

    Budget:

    Tulips = $11

    Geraniums = $21

    Actual:

    Tulips = $12

    Geraniums = $19

    We need to calculate the budgeted contribution margin per composite unit.

    First, we need to calculate the percentage of sales for each plant.

    Total units = 8250 units

    Tulips = 4950/8250 = 0.6

    Geranius = 3300/8250 = 0.4

    Contribution margin = (0.6*11) + (0.4*21) = $15
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Archoid's Flowering Plants provides the following information for the month of May: Actual Budget Tulips Geraniums Tulips Geraniums Sales ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers