Kone Company sells two types of computer chips. The sales mix is 30% (Q-chip) an
ID: 2381387 • Letter: K
Question
Kone Company sells two types of computer chips. The sales mix is 30% (Q-chip) and 70% (Q-chip +). Q-chip has variable cost per unit of $30 and a selling price of $50. Q-chip + has variable cost per unit of $35 and a selling price of $65. The weighted average unit contribution margin for Kone isQuestion 14 options: $50 $23 $27 $25 Kone Company sells two types of computer chips. The sales mix is 30% (Q-chip) and 70% (Q-chip +). Q-chip has variable cost per unit of $30 and a selling price of $50. Q-chip + has variable cost per unit of $35 and a selling price of $65. The weighted average unit contribution margin for Kone is
Kone Company sells two types of computer chips. The sales mix is 30% (Q-chip) and 70% (Q-chip +). Q-chip has variable cost per unit of $30 and a selling price of $50. Q-chip + has variable cost per unit of $35 and a selling price of $65. The weighted average unit contribution margin for Kone is
$50 $23 $27 $25 $50 $23 $27 $25 $50 $23 $27 $25
Explanation / Answer
Contribution margin of Q-chip = 50-30 = 20
Contribution margin of Q-chip + = 65-35 = 30
weighted average unit contribution margin for Kone = 20*30% + 30*70% = 27
Answer: $27
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