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Argyle Sells Steel Beams to Building Contractors in Two Sizes-Regular

Question 148

Multiple Choice

Argyle sells steel beams to building contractors in two sizes-regular and heavy. Argyle sells 4 regular beams for every one heavy beam. Cost data are as follows:
 Regular  Heavy  Price per unit $20.00$28.00 Variable cost per unit $16.00$20.00\begin{array} { | l | r | r | } \hline & { \text { Regular } } & { \text { Heavy } } \\\hline \text { Price per unit } & \$ 20.0 0& \$ 28.00 \\\hline \text { Variable cost per unit } & \$ 16.00 & \$ 20.00\\\hline\end{array}
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How much is the weighted average contribution margin per unit?


A) $5.20
B) $6.00
C) $4.80
D) $4.15

Correct Answer:

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