Saddler Company sells two products, Delta and Sigma, with a sales mix of 20% and 80%, respectively. Delta has a contribution margin per unit of $20, and Sigma has a contribution margin per unit of $13. The company sold 700 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company.Select the formula labels and calculate the contribution margin for Delta and Sigma, then calculate the total contribution margin for the company.Contribution marginDeltaSigmaXXX=

The contribution margin per unit gives vital insights into a product's or service's profitability,…

Answered: Select the formula labels and calculate…

Select the formula labels and calculate the contribution margin for Delta and Sigma, then calculate the total contribution margin for the company. Contribution margin Delta Sigma

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1PA: A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850...

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Question

Saddler Company sells two products, Delta and Sigma, with a sales mix of 20% and 80%, respectively. Delta has a contribution margin per unit of $20, and Sigma has a contribution margin per unit of $13. The company sold 700 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company.
Select the formula labels and calculate the contribution margin for Delta and Sigma, then calculate the total contribution margin for the company.
Contribution margin
Delta
Sigma
X
X
X
=

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