What is the budgeted contribution margin per composite unit


Problem - Michelle's Flowering Plants provides the following information for the month of May:

Actual Budget

Tulips Geraniums Tulips Geraniums

Sales in units 3,900 3,600 4,500 3,000

Contribution margin per unit $11 $18 $10 $20

A. What is the budgeted contribution margin per composite unit for the actual mix?

B. What is the budgeted contribution margin per composite unit for the budgeted mix?

C. For May, will the sales-mix variance be favorable or unfavorable? Explain your answer.

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