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Use the Following Information for Items
Brad Sherwood Corporation  Per-unit data on the two products is presented blow: \text { Per-unit data on the two products is presented blow: }

Question 62

Multiple Choice

Use the following information for items
Brad Sherwood Corporation sells two types of computers; one is designed for audio applications and the other for video applications.Sherwood incurs $300,125 in fixed costs.
 Per-unit data on the two products is presented blow: \text { Per-unit data on the two products is presented blow: }
 Unit data  Audio computer  Video computer Selling price $1,500$1,750 Variable costs 1,1001,200 Contribution margin $400$550 Salses mix 75%25%\begin{array}{llcc} \underline{\text { Unit data } } &\underline{\text { Audio computer } }&\underline{ \text { Video computer }}\\ \text {Selling price } &\$1,500&\$1,750\\ \text { Variable costs } &\underline{1,100}&\underline{1,200}\\ \text { Contribution margin }& \underline{\$400}&\underline{\$550}\\ \text { Salses mix } &75\%&25\%\\\end{array}

-The weighted-average contribution margin is


A) $437.50.
B) $475.00.
C) $1,125.00.
D) $375.00.

Correct Answer:

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