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0 Stamburgers sells three cheeseburgers for every four regular hamburgers. A cheeseburger sols for $3.75 with a variable cos
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Answer #1

Contribution margin = Units sold * (Selling price - Variable cost per unit)

Contribution margin on cheeseburger = 3 * (3.75 - 2.50) = 3.75

Contribution margin on hamburger = 4 * (3.50 - 1.25) = 9.00

Total contribution margin = 3.75 + 9.00 = $12.75

Weighted contribution margin = 12.75 / (3 + 4)

= 12.75 / 7

= 1.82

Correct choice C

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