Solution-Calculate the unit contribution margin for each

Calculate the unit contribution margin for each product type

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Reference no: EM132608320

Thomas ltd sells tables. For the purposes of CVP analysis, the shop owner has divided salesinto three categories, as follows:

Product type, Sales price, Cost Sales, commission

Cedartable $ 1,200 $ 660 $ 60

teaktable $ 720 $ 324 $ 36

Oaktable $ 600 $ 288 $ 30

50 per cent of the shop's sales are Teak table, 30 per cent are Cedar and the remaining 20 per cent are Oak.

The shop's annual fixed costs are $178200.

Problem 1. Calculate the unit contribution margin for each product type.

Problem 2. What is the shop's sales mix

Reference no: EM132608320

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Calculate the unit contribution margin for each product type

Reference no: EM132608320

Reference no: EM132608320

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