Use this information for Rusty Co. to answer the questions that follow.

Rusty Co. sells two products, X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows:

-What was Rusty Co.'s weighted average unit contribution margin?
A) $60.00
B) $20.00
C) $40.00
D) $22.50

Question

Use this information for Rusty Co. to answer the questions that follow.
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Rusty Co. sells two products, X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows:
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-What was Rusty Co.'s weighted average unit contribution margin?
A) $60.00 
B) $20.00 
C) $40.00 
D) $22.50

Quizplus · Accepted Answer

The weighted average unit contribution margin is calculated by taking the sum of the products of each product's unit contribution margin and its proportion of total units sold, then dividing by the total units sold. Without specific data on Rusty Co.'s sales mix, unit contribution margins, or total units sold, it's not possible to calculate or confirm the correct answer directly. However, given the nature of the question, if D) $22.50 is presented as the correct answer, it implies that based on the provided or assumed data within the context of the question (not given here), this would be the result of such a calculation.

Use This Information for Rusty Co