stion: Question 2 www.chegg com study bu Questions 19 through 23 pertain to the

Question

stion: Question 2 www.chegg com study bu Questions 19 through 23 pertain to the following data set: 19. Chicago and Northwestern Corporation sells two products. Arks and Bins. Last year Chicago and Northwestern Corporation sold 14.000 units of Arks and 56.000 units of Bins. Related data are: Product Unit Selling Unit Variable Unit Contribution Price Cost Margin Arks Bins $120 $ 80 $80 $60 $40 $20 What was Chicago and Northwestern Corporation's sales mix for the year? : a) ti C. d. 20% Arks: 80% Bins 12% Arks, 28% Bins 70% Arks: 30% Bins 40% Arks. 20% Bins 20. What was Chicago and Northwestern Corporation's weighted average unit selling price? a. $200 b. S100 $80 $88 21: What was Chicago and Northwestern Corporation's weighted average variable cost? S140 b $70 c. 64 d. $60 22. What was Chicago and Northwestem Corporation's weighed average unit contribution margin? a. $24 b. $60 c. $92 d. $20

Explanation / Answer

19) Calculation of sales mix: Sales mix= Arks:Bins                   =14000:56000=1:4 So correct answer is a) 20% Arks; 80% Bins 20) Calculation of weighted average selling price: Weighted average selling price= 0.2*120+0.8*80                                                                =24+64=$88 So correct answer is d)$88 21) Calculation of weighted average variable cost: Weighted average variable cost= 0.2*80+0.8*60                                                                 =16+48=$64 So correct answer is c)$64 22) calculation of weighted average unit contribution margin: Unit contributon margin= Selling price-variable cost                                                 = 88-64=$24 so correct answer is a)$24

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