Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost per Unit Product per Unit Snowboards $310 Skis $420 Poles $60 $10 Their sales mix is reflected in the ratio 6:4:2. What is the overall unit contribution margin for Salvadores with their current product mix? Overall Unit Contribution Margin $ $190 $240

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11EB: Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost...
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Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows:
Selling Price Variable Cost
per Unit
Product per Unit
Snowboards $310
$190
Skis
$420
$240
Poles
$60
$10
Their sales mix is reflected in the ratio 6:4:2. What is the overall unit contribution margin for Salvadores with their current product mix?
Overall Unit Contribution Margin $
Transcribed Image Text:Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost per Unit Product per Unit Snowboards $310 $190 Skis $420 $240 Poles $60 $10 Their sales mix is reflected in the ratio 6:4:2. What is the overall unit contribution margin for Salvadores with their current product mix? Overall Unit Contribution Margin $
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Overall unit contribution margin is calculated by first calculating individual contribution margin per unit and then multiplying it with the sales mix.

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