What is the budgeted contribution margin per composite unit of the budgeted mix

ACCOUNTING

Multiple Choice

The Sasita Corporation manufactures two types of vacuum cleaners, the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 20x3 were as follows:


Static Budget ZENITH House-Helper Total

Number sold 5,000 20,000 25,000

Contribution margin $1,500,000 $3,000,000 $4,500,000



Actual Results ZENITH House-Helper Total

Number sold 4,000 28,000 32,000

Contribution margin $1,280,000 $3,920,000 $5,200,000


Prior to the beginning of the year, a consulting firm estimated the total volume for vacuum cleaners of the ZENITH and House-Helper category to be 250,000 units, but actual industry volume was 256,000 units.


What is the budgeted contribution margin per composite unit of the budgeted mix?

a. $140.625

b. $180.000

c. $208.000

d. $162.500

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