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8 December, 07:55

Vaughn Manufacturing sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $75 and a selling price of $135. Q-Drive Plus has variable costs per unit of $90 and a selling price of $180. The weighted-average unit contribution margin for Vaughn is

1.$68.

2.$81.

3.$69.

4.$135.

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  1. 8 December, 11:53
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    2. $81

    Explanation:

    According to the situation the computation of weighted-average unit contribution margin is here below:-

    Q Drive Q Drive Plus

    Selling price $135 $180

    Variable cost $75 $90

    Contribution margin

    per unit $60 $90

    Sales mix 30% 70%

    $18 $63

    The weighted-average unit contribution margin = Q Drive + Q Drive Plus

    = $18 + $63

    = $81
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