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Mist Beverages Company sells two products, A and B. Mist predicts that it will sell 3,000...

Mist Beverages Company sells two products, A and B. Mist predicts that it will sell 3,000 units of A and 2,000 units of B during the next period. The unit contribution margins are $3.50 and $4.80 for products A and B, respectively. What is the weighted-average unit contribution margin? (Round your answer to the nearest cent.)

A) $4.15
B) $4.28
C) $4.02
D) $8.30

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Answer #1

Weighted average contribution margin=Sum of Respective total contribution margin/Total units sold

=[(3000*3.5)+(2000*4.8)]/(3000+2000)

=(20100/5000)

which is equal to

=4.02

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