Question

Colossal Beverages Company sells two​ products, A and B. Mist predicts that it will sell 3 comma 000 units of A and 1 comma 500 units of B during the next period. The unit contribution margins are $ 4.00 and $ 4.80 for products A and​ B, respectively. What is the weightedminusaverage unit contribution​ margin?

Answer 1

Weighted average contribution margin= $4.26

Step-by-step explanation:

Giving the following information:

Colossal Beverages Company sells two​ products, A and B.

Mist predicts that it will sell 3,000 units of A and 1, 500 units of B during the next period. The unit contribution margins are $ 4.00 and $ 4.80 for products A and​ B, respectively.

Total units= 4,500

Weighted average sales A= 3,000/4,500= 0.67

Weighted average sales B= 1,500/4,500= 0.33

Weighted average contribution margin= (0.67*4 + 0.33*4.8)= $4.26