Question

If 2/3 two-thirds of all units sold are sandals and 1/3 one-third are shoes, what is the weighted-average unit contribution margin

Answer 1

$30

Step-by-step explanation:

Since the first part is missing, I looked for a similar question:

the contribution margin of sandals = selling price - variable costs = $50 - $35 = $15

the contribution margin of shoes = selling price - variable costs = $150 - $90 = $60

weighted average contribution margin = (weight of sandals x contribution margin of sandals) + (weight of shoes x contribution margin of shoes) = (2/3 x $15) + (1/3 x $60) = $10 + $20 = $30