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Author Question: Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two ... (Read 27 times)

Themember4

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Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:

ActualBudget
CalamineCapityCalamineCapity
Sales in pounds3800 lbs.3980 lbs.4,400 lbs.3,300 lbs
Price per pound$3.00$2.90$2.00$3.00
Variable cost per pound1.002.201.001.50
Contribution margin$2.00$0.70$1.00$1.50

Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300, respectively.

What is the actual contribution margin for the month?
◦ $12,236
◦ $9770
◦ $9900
◦ $10,386


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Marked as best answer by Themember4 on Mar 6, 2021

ttt030911

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Themember4

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


bblaney

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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