Barton Beverages Inc. sells cases of bottled water at $25 each and has variable costs of $10 for each case of water. Fixed costs per month are $30,000. Barton management is considering adding a new bottled water product line that will be sold at $30 a case and have variable costs of $15 per case. Fixed costs would increase by $5,000 per month, and the new line would comprise 60% of Barton's sales revenues going forward. What would be Barton's weighted average contribution margin after the new bottled water line is introduced?

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The Answer of Barton Beverages Inc. sells cases of bottled water at $25 each and has variable costs of $10 for each case of water. Fixed costs per month are $30,000. Barton management is considering adding a new bottled water product line that will be sold at $30 a case and have variable costs of $15 per case. Fixed costs would increase by $5,000 per month, and the new line would comprise 60% of Barton's sales revenues going forward. What would be Barton's weighted average contribution margin after the new bottled water line is introduced?