Question

Becky's Bakery sells three large muffins for every two small ones. A small muffin sells for $3.50 with a variable cost of $2.00. A large muffin sells for $6.00 with a variable cost of $3.00. What is the weighted-average contribution margin? (Round any intermediate calculations and your final answer to the nearest cent.) $2.40 per muffin $4.50 per muffin $4.75 per muffin $2.25 per muffin

Answer 1

Contribution margin small muffin= 3.5-2= $1.5

Contribution margin large muffin = 6-3= $3

(2/5*1.5)+(3/5*3)= $2.40

Step-by-step explanation: