Grantham Company sells two products, X and Y
For the coming year, Grantham predicts sales of 5,000 units of X and 10,000 units of Y. The contribution margins of the two products are $5 and $4, respectively. The weighted-average contribution margin is $6.50.
Indicate whether the statement is true or false
FALSE .Sales mix = 5,000:10,000 = 1:2
Total contribution per unit of the X and Y = ($5 x 1 ) + ($4 x 2 ) = $13
Weighted-average contribution margin per unit = $13 per unit / 3 units = $4.33
You might also like to view...
If the opportunity cost of capital for a project exceeds the Project's IRR, then the project has a(n):
A) acceptable payback period. B) positive NPV. C) positive profitability index. D) negative NPV.
Which of the following is an example of demographic information?
a. An individual's level of intelligence b. An individual's moral values c. An individual's hobbies d. An individual's age