Barnes Company sells two products,X and Y.For the coming year,Barnes predicts sales of 5,000 units of X and 10,000 units of Y.The contribution margins per unit of products X and Y are $5 and $4,respectively.The weighted-average contribution margin is $6.50 per unit.

Question

Quizplus · Accepted Answer

Sales mix = 5,000:10,000 = 1:2
Total contribution per unit of the X and Y = ($5 × 1) + ($4 × 2) = $13
Weighted-average contribution margin per unit = $13 per unit / 3 units = $4.33

Barnes Company Sells Two Products,X and Y