Business Questions: Bateman Barbeque Limited

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Bateman Barbeque Limited

1. Standard contribution margin and actual contribution margin for each Barbeque
(i) Standard contribution margin
Contribution Margin per Unit = Revenues per unit - Variable Expenses per Unit
Basic Barbeque
Contribution Margin per Unit = ($1,350,000 / 4,500) - ($990,000 / 4,500)
Contribution Margin per Unit = $300 - $220 = $80
Deluxe Barbeque
Contribution Margin per Unit = ($4,400,000 / 5,500) - ($3,245,000 / 5,500)
Contribution Margin per Unit = $800 - $590 = $210
(i) Actual contribution margin
Basic Barbeque
Contribution Margin per Unit = ($2,340,000 / 7,200) - ($1,717,200 / 7,200)
Contribution Margin per Unit = $325 - $238.50 = $86.50
Deluxe Barbeque
Contribution Margin per Unit = ($3,360,000 / 4,800) - ($2,798,400 / 4,800)
Contribution Margin per Unit = $700 - $583 = $117...