# How do I calculate the contribution margin for this problem (E21-21)? Transcribed Image Text: “CI UTIW C 3,200,0 per yeui. The Walls Candy Company receives an offer to produce 5,000

How do I calculate the contribution margin for this problem (E21-21)? Transcribed Image Text: “CI UTIW C

3,200,0

per yeui.

The Walls Candy Company receives an offer to produce 5,000 cases of candy for

special event. This is a one-time opportunity during a period when the company

has excess capacity. is the minimum selling price The Walls Candy Company

should accept for the order? Explain why.

a

E21-21 Analyzing profitability

ppld

Spears Company sells two products, Alpha and Omega, with a sales mix of 40%

and 60%, respectively. Alpha has a contribution margin per unit of $10, and

Omega has a contribution margin per unit of $15. The company sold 500 total

units in September. Calculate the total amount each product contributed to the

coverage of fixed costs and the total contribution margin for the company

Note: Exercise E21-21 must be completed before attempting Exercise E21-22.

E21-22 Analyzing profitability

Refer to Exercise E21-21. Assume the sales mix shifted to 50% for each product.

Calculate the total amount each product contributed to the coverage of fixed

costs and the total contribution margin for the company.

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