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

A) Calculations:
$1.50 - $0.60 = $0.90
$1.00 - $0.50 = $0.50
($0.90 × 2) + ($0.50 × 1) = $2.30
$2.30/3 = $0.77

The Local Convenience Store Sells Soft Drinks