Following information is related to sales mix of Product A , B and C.
Total Fixed Cost= Rs 40,000 |
What is the weighted average "contribution margin" per unit for the sales mix? |
Rs 1.2 Rs 1.4 Rs 10.2 Rs 12.8 |
Rs 12.8 |
Weighted average contribution margin per unit for the sales mix= Product A Contribution Mix(CM) per Unit*Product A Sales Mix Percentage (SMP)+ Product B CM per unit* Product B SMP+ Product C CM per unit* Product C SMP
Weighted Average CM per Unit= 1.2+1.4+10.2=12.80 |