A company sells two models of a product basic and premium The basic model has a

A company sells two models of a product basic and

  • Ohlone College
  • BA 101B
  • Homework Help
  • loitering
  • 5
  • 81% (21) 17 out of 21 people found this document helpful

This preview shows page 4 - 5 out of 5 pages.

A company sells two models of a product – basic and premium. The basic model has a variable cost of $75 and sells for $100. The premium model has a variable cost of $100 and sells for $150. If the company usually sells 5000 basic models and 25000 premium models, then the weighted-average contribution margin is 150 units. 15000/(2x(100-75)+1 x (150-100)=150 units
Image of page 4
A company sells two models of a product – basic and premium. If the company sells 5,000 basic models and 2,500 premium models, then the sales mix can be expressed as: A company sells two models of a product – basic and premium. The basic model has a variable cost of $75 and sells for $100. The premium model has a variable cost of $100 and sells for $150. If the company usually sells 5,000 basic models and 2,500 premium models, then the contribution margin per composite unit is The cost accountant at Company C used the high-low method to determine a cost equation of $14000 plus $1.50 per unit. If the company plans to produce 200,500 units next month, then the total estimated cost will be $314,750. (14000+(1.50x200,500 units) = $14000 + 300,750 =
Image of page 5

You've reached the end of your free preview.

Want to read all 5 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture