Question

LO 3.4Waskowski Company sells three products (A, B, and C) with a sales mix of 3:2:1. Unit sales price are shown. What is the sales price per composite unit?

$17.00
$25.00
$35.00
$20.00

Answer 1

$35.00

Step-by-step explanation:

Here is the complete question: LO 3.4Waskowski Company sells three products (A, B, and C) with a sales mix of 3:2:1. Unit sales price are shown. What is the sales price per composite unit?

Product A- $7

Product B- $4

Product C- $6

Sales mix is the relative proportion of the product that company sells. Every company want to maximize their profit margin by achieving sales mix with higher profit margin products. As every product have different profit margin and company can not focus on low margin product to gain more profit.

Proportion of sales mix given are Product A- 3, Product B- 2, Product C- 1.

Unit sales price of products are Product A- $7, Product B- $4, Product C- $6

Now, finding sales price per composite unit.

Product A=
`3\ unit* \$7= $21`

Product B=
`2\ unit* \$4= $8`

Product C=
`1\ unit* \$6= $6`

∴ Sales price per composite unit=
`\$ 21+ \$ 8+\$ 6= \$ 35`

Hence, the sales price per composite unit is $35.