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Beachside Co. sells two products, Skis and Snorkels. Last year Beachside sold 12,600 units of Skis and 23,400 units of Snorkels. Related data are: Product Unit Selling Price Unit Variable Cost Unit Contribution Margin Skis $120 $80 $40 Snorkels 80 60 20 What was Beachside Co.'s total unit selling price? a. $104 b. $92 c. $94 d. $36.80

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Answer:

Weighted average selling price= $94

Explanation:

Giving the following information:

Sales in units:

Skis= 12,600

Snorkles= 23,400

Total= 36,000

Product: Unit Selling Price

Skis= $120

Snorkels= $80

We need to calculate the weighted average selling price per unit for the company as a whole.

First, we need to calculate the participation of each product on sales:

Skis= 12,600/36,000= 0.35

Snorkles= 23,400/36,000= 0.65

Weighted average selling price= (0.35*120) + (0.65*80)= $94

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