Birch Company sells two products,X and Y.For the coming year,Birch predicts the sale of 6,000 units of X and 12,000 units of Y.The contribution margins of the two products are $6 and $4,respectively.The weighted-average contribution margin would be $5.00.

Question

Quizplus · Accepted Answer

Total contribution per unit of the X and Y = ($6 × 1) + ($4 × 2) = $14.00
Weighted-average contribution margin per unit = $14 per unit / 3 units = $4.67

Birch Company Sells Two Products,X and Y