Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales priceand variable cost for each follows:Selling Price Variable CostProductper Unitper UnitSnowboards$340$180Skis$410$220Poles$40$20Their sales mix is reflected in the ratio 6:4:2. What is the overall unit contributionmargin for Salvadores with their current product mix?Overall Unit Contribution Margin $Feedback

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Answered: Overall Unit Contribution Margin:

Business

Accounting

Overall Unit Contribution Margin:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

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
$340
$180
Skis
$410
$220
Poles
$40
$20
Their sales mix is reflected in the ratio 6:4:2. What is the overall unit contribution
margin for Salvadores with their current product mix?
Overall Unit Contribution Margin $
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