For the next year,Hall & Co.predicts the sale of 15,000 units of a product with a contribution margin of $6 per unit and 30,000 units of another product with a contribution margin of $9 per unit.The weighted-average contribution margin per unit is $8.

Question

Quizplus · Accepted Answer

To calculate the weighted-average contribution margin per unit, we need to take into account the sales mix (i.e. the proportion of each product's sales to the total sales). In this case, the sales mix is 15,000 units of the first product and 30,000 units of the second product, for a total of 45,000 units.

Weighted-average contribution margin per unit = (Contribution margin of Product 1 * Sales Mix of Product 1) + (Contribution margin of Product 2 * Sales Mix of Product 2) / Total Sales Mix
= ($6 * 15,000) + ($9 * 30,000) / 45,000
= $270,000 / 45,000
= $6 per unit

However, the question states that the weighted-average contribution margin per unit is $8, which is incorrect. Therefore, the answer is false.

For the Next Year,Hall & Co