Oriental Furnitures makes three types of quality wooden furniture. Information for these three products are shown below: A1A2A3TotalSelling price per unit$200$500$1 000 Variable cost per unit$60$250$600 Expected unit sales (annual)15,0007,0002,00024,000Sales mix60 percent30 percent10 percent100 percentTotal annual fixed costs are $4,000,000. Assume the sales mix remains the same at all levels of sales.Required: SHOW YOUR WORKINGS FOR ALL SECTIONS Calculate the weighted average unit contribution margin, assuming a constant sales mix.

Contribution margin or gross profit refers to the profit earns by the company for selling goods and…

Answered: Calculate the weighted average unit…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Oriental Furnitures makes three types of quality wooden furniture. Information for these three products are shown below:

	A1	A2	A3	Total
Selling price per unit	$200	$500	$1 000
Variable cost per unit	$60	$250	$600
Expected unit sales (annual)	15,000	7,000	2,000	24,000
Sales mix	60 percent	30 percent	10 percent	100 percent

Total annual fixed costs are $4,000,000. Assume the sales mix remains the same at all levels of sales.

Required: SHOW YOUR WORKINGS FOR ALL SECTIONS

Calculate the weighted average unit contribution margin, assuming a constant sales mix.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions