Overall Unit Contribution Margin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
alvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows:
| Product | Selling Price per Unit |
Variable Cost per Unit |
| Snowboards | $300 | $160 |
| Skis | $420 | $210 |
| Poles | $60 | $30 |
Their sales mix is reflected in the ratio 6:4:1. What is the overall unit contribution margin for Salvadores with their current product mix?
Overall Unit Contribution Margin $fill in the blank 1
Transcribed Image Text:Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and
variable cost for each follows:
Selling Price Variable Cost
Product
per Unit
per Unit
Snowboards
$300
$160
Skis
$420
$210
Poles
$60
$30
Their sales mix is reflected in the ratio 6:4:1. What is the overall unit contribution margin
for Salvadores with their current product mix?
Overall Unit Contribution Margin $
155.45
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