Becky's Bakery sells three large muffins for every two small ones. A small muffin sells for $3, with a variable cost of $2.00. A large muffin sells for $5 with a variable cost of $2.50. What is the weighted-average contribution margin?

Question

Quizplus · Accepted Answer

D) Calculations:
$5.00 - $2.50 = $2.50
$3.00 - $2.00 = $1.00
($2.50 × 3) + ($1.00 × 2) = $9.50
$9.50/5 = $1.90

Becky's Bakery Sells Three Large Muffins for Every Two Small