Question

Vaughn Manufacturing sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $75 and a selling price of $135. Q-Drive Plus has variable costs per unit of $90 and a selling price of $180. The weighted-average unit contribution margin for Vaughn is

1.$68.

2.$81.

3.$69.

4.$135.

Answer 1

2. $81

Step-by-step explanation:

According to the situation the computation of weighted-average unit contribution margin is here below:-

Q Drive Q Drive Plus

Selling price $135 $180

Variable cost $75 $90

Contribution margin

per unit $60 $90

Sales mix 30% 70%

$18 $63

The weighted-average unit contribution margin = Q Drive + Q Drive Plus

= $18 + $63

= $81