Jamal & Co. makes and sells two types of shoes, Plain and Fancy, Data concerning these products are a follows:
Unit selling price $20.00 $35.00
Variable cost per unit 12.00 24.50
Sixty percent of the unit sales are Plain, and annual fixed expenses are $ 45,000.© BrainMass Inc. brainmass.com March 4, 2021, 11:36 pm ad1c9bdddf
1) The weighted-average unit contribution margin is?
Weighted-average contribution margin = (contribution margin of Plain*portion of sales of Plain) + (contribution margin of Fancy* portion of sales of Fancy)
Weighted-average contribution margin = ...
This solution illustrates how to compute the weighted-average contribution margin and weighted-average break-even point.