Fontana Pizza Company sells pizzas in two different sizes-medium and large.The number of medium pizzas sold is twice the number of large pizzas sold.The contribution margin of a medium pizza is $12 and the contribution margin of a large pizza is $18.The weighted average contribution margin is $15.

Question

Quizplus · Accepted Answer

Contribution margin of medium pizza = $12 × 2 = $24
Contribution margin of large pizza = $18 × 1 = $18
Total contribution = $24 + $18 = $42
Weighted-average contribution margin per unit = ($24 + $18) / 3 = $14

Fontana Pizza Company Sells Pizzas in Two Different Sizes-Medium and Large.The