For the next year,Sullivan & Co.predicts sales 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 $10 per unit.The weighted-average contribution margin per unit is $8.67.

Question

Quizplus · Accepted Answer

Total contribution = ($6 × 15,000) + ($10 × 30,000) = $90,000 + $300,000 = $390,000
Weighted-average contribution margin per unit = $390,000 / 45,000 = $8.67

For the Next Year,Sullivan & Co