Mist Company sells two products-A and B. Mist predicts that it will sell 2,500 units of A and 1,500 units of B during the next period. The unit contribution margins are $3.50 and $4.80, respectively. What is the weighted-average unit contribution margin? (Please round to nearest cent.)

Question

Quizplus · Accepted Answer

A) Calculations:
($3.50 × 2,500) + ($4.80 × 1,500) = $15,950
$15,950/4,000 = $3.99

Mist Company Sells Two Products-A and B