Ask Question
1 April, 03:25

Madden Enterprises sells two products, Silver models and Gold models. Madden Enterprises predicts that it will sell 6 comma 3006,300 Silver models and 3 comma 9003,900 Gold models in the next period. The unit contribution margins for Silver models and Gold models are $ 95$95 and $ 190$190 , respectively. What is the weighted average unit contribution margin?

+4
Answers (1)
  1. 1 April, 03:41
    0
    The weighted average contribution margin per unit is $131.32.

    Explanation:

    The total combined sales of both the products equal, 6300 + 3900 = 10200

    The weightage of each product in sales mix is,

    Silver = 6300 / 10200

    Gold = 3900 / 10200

    The weighted average contribution margin can be calculated by multiplying the per unit contribution of each product with their respective weights.

    Weighted average unit CM = 6300/10200 * 95 + 3900/10200 * 190

    Weighted average unit CM = $131.32
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Madden Enterprises sells two products, Silver models and Gold models. Madden Enterprises predicts that it will sell 6 comma 3006,300 Silver ...” 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