Mc. Claim manufactures and sells two products, ABS and DBS in the ratio of 3:2. Product ABS sells for $55 and product DBS sells for $75. Variable cost for product ABS is $22 and for product DBS is $40. Fixed costs are $218,500. Determine the contribution margin per composite unit. a. $340 b. $76 c. $68 d. $169

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%
Mc. Claim manufactures and sells two products, ABS and DBS in the ratio of 3:2. Product
ABS sells for $55 and product DBS sells for $75. Variable cost for product ABS is $22 and for
product DBS is $40. Fixed costs are $218,500.
Determine the contribution margin per composite unit.
a. $340
b. $76
c. $68
d. $169
Transcribed Image Text:Mc. Claim manufactures and sells two products, ABS and DBS in the ratio of 3:2. Product ABS sells for $55 and product DBS sells for $75. Variable cost for product ABS is $22 and for product DBS is $40. Fixed costs are $218,500. Determine the contribution margin per composite unit. a. $340 b. $76 c. $68 d. $169
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning