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pduvin pduvin
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6 years ago
A company sells three different types of satellite dishes in Ontario, but sells only (type 1) in Alberta. Available data are that the budgeted sales mix percentage in Ontario is .35 (type 1), and .25 (type 2). The contribution margins per unit are $200 (1), $120 (2), and $140(3).

Required:
Calculate the budgeted contribution margin per composite unit for the budgeted mix for Ontario and Alberta respectively.
A) $156 and $70
B) They are the same in both provinces.
C) $156 and $114
D) $156 and $200
E) $114 and $70
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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wrote...
6 years ago
D
Explanation:  D) For Ontario [35% * $200] + [25% * $120] + [40% * $140] = $70 + $30 + $56 = $156;
$200 × 1.00 = $200 for Alberta
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