Shugart sells two products. Product A sells for $77 with variable costs of $32. Product B sells for $164 with variable costs of $52. The sales mix is 51% for products A while product B's is the remainder (or 100% less 51. What is the weighted average unit contribution margin rounding to the nearest penny? As always, do not use $ signs.

77.83 dollars.

Explanation:

Contribution margin is known as the difference between the Selling price and variable costs.

So in the above scenario,

Product A Contribution Margin = 77 - 32

= $45

Product B Contribution Margin = 164 - 52

= $112

Now we are to calculate the Weighted Average. To do that we multiply the Contribution margins by their proportion of the sales mix and then add them up.

Product A proportion = 51%

Product B proportion = 49%

Weighted Average = 0.51(45) + 0.49(112)

= 77.83

The weighted average unit contribution margin is 77.83 dollars.

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step 2: inventory facility equipment/assets

step 3: create preventive maintenance procedures

step 4: create preventive maintenance schedules

step 5: train your maintenanceteam

step 6: analyze – adjust - improve

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step 1 – pm procedure design: doing the effective things

step 2 – pm procedure scheduling: efficient use of people and resources

step 3 – pm lubrication engineering

step 4 – pm training: back on the chain gang

step 5 – pm program management plan

step 6 – communicate, communicate, communicate

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