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# COMMERCE 2AB3 Lecture Notes - Lecture 5: Contribution Margin, Variable Cost, Finished GoodExam

by OC2389816

School

McMaster UniversityDepartment

CommerceCourse Code

COMMERCE 2AB3Professor

Mohamed ShehataStudy Guide

FinalThis

**preview**shows half of the first page. to view the full**2 pages of the document.** TUTORIAL 5 - QUESTIONS

MC:

1. Lamar & Co., makes and sells two types of shoes, Plain and Fancy. Data concerning these products

are as follows:

Plain

Fancy

Unit selling price

$20.00

$35.00

Variable cost per unit

12.00

24.50

Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000.

The weighted-average unit contribution margin is:

A. $4.80.

B. $9.00.

C. $9.25.

D. $17.00.

Problem 1

Baubles and Trinkets are complementary products. The company’s sale mix analysis shows that

for every 3 units of Bauble sold, 2 units of Trinkets could be sold. The unit information of

Baubles and Trinkets are as follows :

The sales mix is 3 units of Bauble to 2 units of Trinket. Calculate the company’s breakeven for

a bundle sale

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