Carla Vista Company makes 2 products, sleep masks and sleep socks. Additional information follows: ...
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Carla Vista Company makes 2 products, sleep masks and sleep socks. Additional information follows:
| Sleep Masks | Sleep Socks | ||||||
|---|---|---|---|---|---|---|---|
| Units | 6,000 | 4,500 | |||||
| Sales | $120,000 | $85,000 | |||||
| Variable costs | 55,980 | 26,995 | |||||
| Fixed costs | 28,980 | 28,980 | |||||
| Net income | $35,040 | $29,025 | |||||
| Profit per unit | $5.84 | $6.45 | |||||
Compute the Contribution margin per unit. (Round answers to 2 decimal places, e.g. 15.25.)
| Contribution margin per unit | |||
|---|---|---|---|
| Sleep Masks | $enter a dollar amount rounded to 2 decimal places | ||
| Sleep Socks | $enter a dollar amount rounded to 2 decimal places |
Carla Vista has unlimited demand for both products. Therefore, which product should the company encourage its sales people to emphasize? select a product Sleep masksSleep socks
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