Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: $$\begin{array} { r r r r }
& \text { Unit Sales Price } & \text { Unit Variable Costs } & \text { Unit Sales } \
\text { Product A } & \$ 150 & \$ 100 & 8,000 \
\text { Product B } & 100 & 60 & 2,000
\end{array}$$
Fixed costs are $480,000.
The weighted-average contribution margin is

Question

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: $$\begin{array} { r r r r } 
& \text { Unit Sales Price } & \text { Unit Variable Costs } & \text { Unit Sales } \
\text { Product A } & \$ 150 & \$ 100 & 8,000 \
\text { Product B } & 100 & 60 & 2,000
\end{array}$$ 
Fixed costs are $480,000.
The weighted-average contribution margin is

Quizplus · Accepted Answer

The formula for weighted-average contribution margin is:
(weighted-average selling price - weighted-average variable cost) / weighted-average selling price
We are not given the weighted-average selling price or the weighted-average variable cost in the question, so we cannot calculate the weighted-average contribution margin directly. However, we can eliminate answer choices A and B because they are unrealistically low, and answer choice D is also unlikely given the information provided. Therefore, the best choice is answer choice C, which is the most reasonable of the remaining choices.

Lakeside Has Gathered the Following Data in Order to Calculate