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Based on the below information, calculate the weighted average contribution margin. Product B Product A $10 15% Contribution

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Answer #1

Weighted average contribution margin :

Product A

Unit contribution margin× production ratio

= $10×15%= $1.5

Product B

= $20×35%= $7

Product C

= $40×50%= $20

Total weighted average contribution margin= $1.5+$7+$20= $28.5

For this Answer is option C.

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