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Final

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

Department
Commerce
Course Code
COMMERCE 2AB3
Professor
Mohamed Shehata
Study Guide
Final

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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 companys breakeven for
a bundle sale