Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively. Delta has a contribution margin per unit of $24, and Alpha has a contribution margin per unit of $21. The company sold 600 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company. Select the formula labels and calculate the contribution margin for Delta and Alpha, then calculate the total contribution margin for the company.
Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively. Delta has a contribution margin per unit of $24, and Alpha has a contribution margin per unit of $21. The company sold 600 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company. Select the formula labels and calculate the contribution margin for Delta and Alpha, then calculate the total contribution margin for the company.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
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Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively. Delta has a contribution margin per unit of $24, and Alpha has a contribution margin per unit of $21. The company sold 600 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company. Select the formula labels and calculate the contribution margin for Delta and Alpha, then calculate the total contribution margin for the company.
Transcribed Image Text:Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively. Delta has a contribution margin per unit of $24, and Alpha has a
contribution margin per unit of $21. The company sold 600 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs
and the total contribution margin for the company.
Select the formula labels and calculate the contribution margin for Delta and Alpha, then calculate the total contribution margin for the company.
Delta
Alpha
Contribution margin per unit
x Units sold
24
21
×
=
Contribution margin
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