NoFly Corporation sells three different models of a mosquito “zapper.” Model A12 sells for $54 and...

NoFly Corporation sells three different models of a mosquito “zapper.” Model A12 sells for $54 and has variable costs of $39. Model B22 sells for $105 and has variable costs of $73. Model C124 sells for $411 and has variable costs of $309. The sales mix of the three models is A12, 59%; B22, 30%; and C124, 11%.

What is the weighted-average unit contribution margin? (Round answer to 2 decimal places, e.g. 15.50.)

Weighted-Average Unit Contribution Margin

Expert Solution


	NoFly Corporation
	Model A12	Model B 22	Model C124	Total
Selling Price per unit=(A)	$ 54.00	$ 105.00	$ 411.00
Variable cost per unit=(B)	$ 39.00	$ 73.00	$ 309.00
Contribution Margin per unit=(C )=(A)-(B)	$ 15.00	$ 32.00	$ 102.00
Sales Mix %=(D )	59%	39%	11%
Weighted Average contribution Margin per unit=(C )*(D)	$ 8.85	$ 12.48	$ 11.22	$ 32.55

Weighted Average contribution margin per unit=	$ 32.55

ekkarill92 answered 2 years ago

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