Weiss Corporation Produces Two Models of Wood Chairs, Colonial and Early

question 206

Multiple Choice

Weiss Corporation produces two models of wood chairs, Colonial and Early American. The Colonial sells for $60 per chair and the Early American sells for $80 per chair. Variable expenses for each model are as follows:
Total fixed expenses are $39,600 per month. Expected monthly sales are: Colonial, 1,800 units; Early American, 600 units.
-The contribution margin per chair for the Colonial model is:

• A)$51
• B)$16
• C)$35
• D)$25

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