ZTL Ltd produces three products. Cost, price, and volume data is shown below: The weighted average contribution margin per unit, rounded to the nearest cent, is:

Question

Quizplus · Accepted Answer

Weighted average contribution margin per unit can be calculated as follows:

[(CM1 x Units of Product 1) + (CM2 x Units of Product 2) + (CM3 x Units of Product 3)] ÷ Total units

= [(2 × 30,000) + (5 × 40,000) + (6 × 50,000)] ÷ 120,000
= (60,000 + 200,000 + 300,000) ÷ 120,000
= $4.15 (rounded to the nearest cent)

Therefore, the best answer is C.

ZTL Ltd Produces Three Products