Question
In: Accounting
The Winner's Circle sells two products, medals and trophies. The Winner's Circle predicts that it will...
The Winner's Circle sells two products, medals and trophies. The Winner's Circle predicts that it will sell 25000 medals and 5300 trophies in the next period. The unit contribution margins for medals and trophies are $ 5.00 and $ 14.75, respectively. What is the weighted average unit contribution margin?
Solutions
Expert Solution
- All working forms part of the answer
- Working
Total of Sales mix = 25000 + 5300 = 30,300
|
Medals |
Trophies |
Total |
|
|
Unit Contribution margin |
$ 5.00 |
$ 14.75 |
|
|
Weighted Average unit contribution margin |
$ 4.13 [=$ 5 x (25000/30300) ] |
$ 2.58 [=$ 14.75 x (5300/30300) ] |
$ 6.71 |
- Answer: Weighted Average Unit Contribution margin = $ 6.71 per unit
ekkarill92 answered 2 years agoRelated Solutions
Award Plus manufactures medals and trophies for winners of athletic competitions and other contests. Award Plus’s...
Award Plus manufactures medals and trophies for winners of
athletic competitions and other
contests. Award Plus’s manufacturing plant has the capacity to
produce 10,000 medals per
month. Currently, Award Plus is operating at 75% of available
capacity, producing 7,500 medals
per month. Pertinent data for this level of operations
follows:
Medals produced and sold 7,500
Selling price $175 per medal
Fixed costs:*
Manufacturing $46 per medal
Marketing & administrative $34 per medal
Variable costs:
Direct materials $50 per medal
Direct...
Trophies R Us manufactures medals for winners of athletic events and other contests. Its manufacturing plant...
Trophies R Us manufactures medals for winners of athletic events
and other contests. Its manufacturing plant has the capacity to
produce 10,000 medals each month; current monthly production is
7,500 medals. The company normally charges $225 per medal. Variable
costs and fixed costs for the current activity level of 75%
follow:
Current product costs
Variable costs
Manufacturing
Labor
$375,000
Materials
300,000
Marketing
187,500
Total variable costs
862,500
Fixed costs
Manufacturing
275,000
Marketing
225,000
Total fixed costs...
Barkley Company sells two products, red cups and black mugs. Barkley predicts that it will sell...
Barkley Company sells two products, red cups and black mugs.
Barkley predicts that it will sell
2,600 red cups and 700black mugs in the next period. The unit
contribution margins for red cups and black mugs are
$ 3.00 and $ 3.90 respectively. What is the weighted average
unit contribution margin? (Round the final answer to the nearest
cent.)
A.$ 11.14
B.$ 4.05
C.$ 0.83
D.$ 3.19
Walton Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces...
Walton Trophies makes and sells trophies it distributes to
little league ballplayers. The company normally produces and sells
between 4,000 and 10,000 trophies per year. The following cost data
apply to various activity levels:
Required
Complete the preceding table by filling in the missing amounts
for the levels of activity shown in the first row of the table.
(Round "Cost per unit" answers to 2 decimal
places.)
Number of Trophies
4,000
6,000
8,000
10,000
Total costs incurred
Fixed
$46,000
Variable...
YouWin! manufacturers and sells custom wooden trophies. Each of the company’s two divisions, production and sales,...
YouWin! manufacturers and sells custom wooden trophies. Each of
the company’s two divisions, production and sales, has a manager
who is responsible for all costs in his/her division. The following
are selected costs from YouWin!: Wood Brass ornamentation
Engraving materials
Adhesive for trophy production
Salary of sales staff
Wages of machine operators
Wages of factory custodial staff
Production manager’s salary
Rent and insurance of factory building
Rent on headquarters building
Engraving machine
Electricity for factory building
Depreciation of office equipment...
Winner’s Circle, Inc., manufactures medals for winners of athletic events and other contests. Its manufacturing plant...
Winner’s Circle, Inc., manufactures medals for winners of
athletic events and other contests. Its manufacturing plant has the
capacity to produce 2,300 medals each month. Current monthly
production is 1,725 medals. The company normally charges $590 per
medal. Variable costs and fixed costs for the current activity
level of 75 percent of capacity are as follows:
Production Costs
Variable costs:
Manufacturing:
Direct labor
$
241,500
Direct material
232,875
Marketing
129,375
Total variable costs
$
603,750
Fixed costs:
Manufacturing
$
206,850...
Winner’s Circle, Inc. manufactures medals for winners of athletic events and other contests. Its manufacturing plant...
Winner’s Circle, Inc. manufactures medals for winners of
athletic events and other contests. Its manufacturing plant has the
capacity to produce 3,400 medals each month. Current monthly
production is 2,550 medals. The company normally charges $490 per
medal. Variable costs and fixed costs for the current activity
level of 75 percent of capacity are as follows:
Production Costs
Variable costs:
Manufacturing:
Direct labor
$
510,000
Direct material
165,750
Marketing
191,250
Total variable costs
$
867,000
Fixed costs:
Manufacturing
$
209,100...
A Company is selling two products A and B. It sells the two products at the...
A Company is selling two products A and B. It sells the two
products at the prices of AED 190 and 230 respectively. The finance
department estimated the fixed cost for both products A and B as
AED 2400 and 2550 and the variable cost to make a unit of each
product is AED 70 and 60 respectively.
Compute the number of units the company must sell to Break-Even
from each product? Compute the total revenue at these Break-Even
Points?...
Mattison manufactures two products: A and B. The company predicts a sales volume of 20,000 units...
Mattison manufactures two products: A and B. The company
predicts a sales volume of 20,000 units for product A and desired
ending finished-goods inventory of 1,000 units. These numbers for
product B are 25,000 and 3,000, respectively. Mattison currently
has 7,000 units of A in inventory and 9,000 units of B. The unit
selling price for A and B are $250 and $200 respectively.
The following raw materials are required to manufacture these
products:
Raw Material
Cost Per Pound
Required...
Mattison manufactures two products: A and B. The company predicts a sales volume of 20,000 units...
Mattison manufactures two products: A and B. The company
predicts a sales volume of 20,000 units for product A and desired
ending finished-goods inventory of 1,000 units. These numbers for
product B are 25,000 and 3,000, respectively. Mattison currently
has 7,000 units of A in inventory and 9,000 units of B. The unit
selling price for A and B are $250 and $200 respectively.
The following raw materials are required to manufacture these
products:
Raw Material
Cost Per Pound
Required...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
ADVERTISEMENT