Xeller Company

Xeller Company makes electronic keyboards. The practice model price is $220 and variable expenses are $190. The deluxe model price is $340 and variable expenses are $250. The professional model price is $1,200 and variable expense per unit is $800. Total fixed expenses are $187,000. Generally, Xeller sells 6 practice models and 3 deluxe models for every professional model sold. Refer to Figure 4-6. Using the sales mix stated in the facts from Figure 4-6 to form a package, what is the total package contribution margin?

$850

$450

$520

$1,890

$587