Question

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

Answer 1

	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