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4. GoGrow produces shovels and rakes. Sales and costs for the most recent year are indicated below:
Shovels Rakes Total
Units 8,000 20,000 28,000
Sales revenue $160,000 $40,000 $200,000
Variable costs 98,000 18,000 116,000
Fixed costs 28,000 12,000 40,000
Profit $34,000 $10,000 $44,000
The number of units and selling price per unit appears to be stable for the foreseeable future.
What is the weighted average contribution margin per unit?
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