The Double Arthur Company (DAC) has three product lines of coffee mugs — Earth, Sun and Mun — with contribution margins of $9, $8, and $5 respectively. The president Maxat Jexembay foresees sales, consisting of 90000 units of Earth, 70000 units of Sun, and 55000 units of Mun. The company’s fixed costs for the period are $600000. Required: 1. What is the the company’s average contribution margin for given sales mix?
The Double Arthur Company (DAC) has three product lines of coffee mugs — Earth, Sun and Mun — with contribution margins of $9, $8, and $5 respectively. The president Maxat Jexembay foresees sales, consisting of 90000 units of Earth, 70000 units of Sun, and 55000 units of Mun. The company’s fixed costs for the period are $600000. Required: 1. What is the the company’s average contribution margin for given sales mix?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Double Arthur Company (DAC) has three product lines of coffee mugs — Earth, Sun and Mun — with contribution margins of $9, $8, and $5 respectively. The president Maxat Jexembay foresees sales, consisting of 90000 units of Earth, 70000 units of Sun, and 55000 units of Mun. The company’s fixed costs for the period are $600000.
Required:
1. What is the the company’s average contribution margin for given sales mix?
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