The local convenience store sells soft drinks. It sells two large drinks for every small drink. A large drink sells for $1.50, with a variable cost of $0.60. A small drink sells for $1.00 with a variable cost of $0.50. What is the weighted- average contribution margin? (Please round to the nearest cent.)

Question

Quizplus · Accepted Answer

Weighted-average contribution margin = [(2 x $1.50 x 0.40) + ($1.00 x 0.50)] / [2 x $1.50 + $1.00] = $0.77

The Local Convenience Store Sells Soft Drinks