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Total Package Contribution Margin

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Standlar Company makes wireless speakers. The standard model price is $360 and variable expenses are $210. The deluxe model price is $500 and variable expenses are $300. The superior model price is $1,600 and variable expense per unit is $600. Total fixed expenses are $300,000. Generally, Standlar sells 8 standard models and 4 deluxe models for every superior model sold.

What is the total package contribution margin?

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Solution Summary

This solution contains step-by-step calculations to determine the total package contribution margin.

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CM = selling price - variable cost

standard = $360 - 210 = ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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