For the next year,the Drenning Birch Company predicts the sale of 16,000 units of a product with a contribution margin of $7 per unit and 32,000 units of another product with a contribution margin of $10 per unit.The weighted-average contribution margin per unit is $9.

Question

Quizplus · Accepted Answer

Total contribution = ($7 × 16,000) + (10 × 30,000) = $112,000 + $320,000 = $432,000
Weighted-average contribution margin per unit = $432,000 / 48,000 = $9

For the Next Year,the Drenning Birch Company Predicts the Sale