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Question - Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line.
Rotomolded
Composite
Sales price/unit
$1,100
$2,000
Variable costs/unit
$660
$1,340
The company's fixed costs are $972.840. An analysis of the sales mix identifies that rotomolded kayaks make up 80% of the total units sold.
Required - Determine the weighted-average unit contribution margin for Current Designs.
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