Question

Sinclair Company sells two software products, Mango and Orange, with a sales mix of 60% and 40%, respectively. Mango has a contribution margin per unit of $32, and Orange has a contribution margin per unit of $24. The company sold 1,100 total units in March. Calculate the total contribution margin for the company.

Answer 1

Total 31,680

Step-by-step explanation:

1,100 x 60% = 660 Mango x $32 Contribution Margin = 21,120

1,100 x 40% = 440 Orange x $24 Contribution Margin = 10,560

Total 31,680

The procedure will be to multiply the units by the sales mix.

Then we multiply each type of product for their contribution margin

Lastly, we add them to get the total contribution margin.