Figure 4-6. Xeller Company makes electronic keyboards. The practice model price

Question

Figure 4-6. Xeller Company makes electronic keyboards. The practice model price is $220 and variable expenses are $190. The deluxe model price is $340 and variable expenses are $250. The professional model price is $1,200 and variable expense per unit is $800. Total fixed expenses are $187,000. Generally, Xeller sells 6 practice models and 3 deluxe models for every professional model sold. Refer to Figure 4-6. Using the sales mix stated in the facts from Figure 4-6 to form a package, what is the total package contribution margin? Answer $850 $450 $520 $1,890 $587

Explanation / Answer

contribution margin = 1/10*(1200-800) + 6/10*(220-190) + 3/10*(340-250) = $85 total package contribution margin = 85*10 = $850

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.