Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown: Salvador Manufacturing data Product Selling price per unit Variable cost per unit Snowboards $320 $170 Skis 400 225 Poles 50 20 Their sales mix is reflected in the ratio 7:3:2. Calculate the following: Contribution margin for Snowboards (based on mix) Contribution margin for Skis (based on mix) Contribution margin for Poles (based on mix) Contribution margin per composite unit

Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown: Salvador Manufacturing data Product Selling price per unit Variable cost per unit Snowboards $320 $170 Skis 400 225 Poles 50 20 Their sales mix is reflected in the ratio 7:3:2. Calculate the following: Contribution margin for Snowboards (based on mix) Contribution margin for Skis (based on mix) Contribution margin for Poles (based on mix) Contribution margin per composite unit

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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Product	Selling price per unit	Variable cost per unit
Snowboards	$320	$170
Skis	400	225
Poles	50	20

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Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown: Salvador Manufacturing data Product Selling price per unit Variable cost per unit Snowboards $301 $175 Skis 455 204 Poles 79 44 Their sales mix is reflected in the ratio 8:2:8. If annual fixed costs shared by the three products are $136,431, how many composite units will need to be sold in order for Salvador to break even?
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