Ahmed & Co. makes and sells two types of shoes, Plain and
Fancy. Data concerning these products are as follows:
Plain
Fancy
Unit selling price
$
25.00
$
36.00
Variable cost per unit
13.00
20.00
Sixty percent of the unit sales are Plain, and annual fixed
expenses are $95,200.
The weighted-average unit contribution margin is:
a. $9.40
b. $13.60