Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively. Delta has a contribution margin per unit of $24, and Alpha has a contribution margin per unit of $21. The company sold 600 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 Alpha, then calculate the total contribution margin for the company.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
icon
Related questions
Question

Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively. Delta has a contribution margin per unit of $24, and Alpha has a contribution margin per unit of $21. The company sold 600 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 Alpha, then calculate the total contribution margin for the company.

Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively. Delta has a contribution margin per unit of $24, and Alpha has a
contribution margin per unit of $21. The company sold 600 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 Alpha, then calculate the total contribution margin for the company.
Delta
Alpha
Contribution margin per unit
x Units sold
24
21
×
=
Contribution margin
Transcribed Image Text:Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively. Delta has a contribution margin per unit of $24, and Alpha has a contribution margin per unit of $21. The company sold 600 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 Alpha, then calculate the total contribution margin for the company. Delta Alpha Contribution margin per unit x Units sold 24 21 × = Contribution margin
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College