Chapter 6, Problem 6.7BE

NoFly Corporation sells three different models of a mosquito “zapper.” Model A12 sells for $50 and has variable costs of $35. Model B22 sells for $100 and has variable costs of $70. Model C124 sells for $400 and has variable costs of $300. The sales mix of the three models is A12, 60%; B22, 15%; and C124, 25%. What is the weighted-average unit contribution margin?

Compute weighted unit contribution margin based on sales mix.

(LO 2), AP