Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.
Sagot :
The weighted-average contribution margin of Helpful hardware which sells windows and doors is $216.
Calculation of Weighted-Average Contribution Margin
The weighted-average contribution margin can be calculated using the following formula:
Weighted-average contribution margin = (Contribution margin of windows * Percentage sales contribution of windows) + (Contribution margin of doors * Percentage sales contribution of doors) ……….. (1)
Where:
Contribution margin of windows = Selling price of each window - Variable cost of each window = $580 - $385 = $195
Percentage sales contribution of windows = 80%
Contribution margin of doors = Selling price of each door - Variable cost of each door = $1,180 - $880 = $300
Percentage sales contribution of doors = 20%
Substituting all the values into equation (1), we have:
Weighted-average contribution margin = ($195 * 80%) + ($300 * 20%) = $216
Therefore, the weighted-average contribution margin is $216.
Learn more about weighted-average contribution margin here: https://brainly.com/question/17054087.
Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.
