Question

Woodruff Flowering Plants provides the following information for the month of May:

Actual Budget
Fuchsia Dogwood Fuchsia Dogwood
Sales in units 19,000 4,700 17,000 3,000
Contribution margin per unit $22 $19 $21 $17
What is the budgeted contribution margin per composite unit for the actual mix? (Round any intermediary calculations two decimal places.)

Answer 1

The budgeted contribution margin per composite unit for the actual mix is $19.53 for Fuchsia and $18.32 for Dogwood.

Step-by-step explanation:

To calculate the budgeted contribution margin per composite unit for the actual mix, we need to multiply the sales in units by the contribution margin per unit for each product, and then divide the sum by the total sales in units.

For Fuchsia, the calculation would be: (17,000 x $21) + (3,000 x $17) / 19,000 = $19.53

For Dogwood, the calculation would be: (4,700 x $19) + (3,000 x $17) / 19,000 = $18.32

Therefore, the budgeted contribution margin per composite unit for the actual mix is $19.53 for Fuchsia and $18.32 for Dogwood.