I\'m trying to solve a homework question to figure out sales mix percentages. I

Question

I'm trying to solve a homework question to figure out sales mix percentages.   I used there reference which has the breakdown to help me solve it, but I'm not grasping something - that dang letter y!!   For example, step #1 I understand the 11,600 and 31,900 value but how to they come up the $16,675.  I'm sure I'm calculating something wrong.  Can someone break it down for this non accounting mind.   Thank you...

I'm trying to solve a homework question to figure out sales mix percentages. I used there reference which has the breakdown to help me solve it, but I'm not grasping something - that dang letter y!! For example, step #1 I understand the 11,600 and 31,900 value but how to they come up the $16,675. I'm sure I'm calculating something wrong. Can someone break it down for this non accounting mind. Thank you...

Explanation / Answer

data Given
Budget Total contribution margin= $16675
Let y be budgeted sales mix % of plain wine glasses
And 1-y be budgeted sales mix % of chic wine glasses

Formula
(2900y*4)+(2900*(1-y)*11)=16675 (as given in question total contribution)

11600y+31900-31900y=16675
20300y=15225
y=15225/20300
y=0.75 or 75%

Chic wine glasses= 1-y=0.25 or 25%

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