Riverside has gathered the following data in order to calculate the weighted-average contribution margin: Round intermediate and final answers to two decimal places. The weighted-average contribution margin is

Question

Riverside has gathered the following data in order to calculate the weighted-average contribution margin: Round intermediate and final answers to two decimal places.  The weighted-average contribution margin is

Quizplus · Accepted Answer

Weighted-average contribution margin is calculated by dividing the total contribution margin by the total units sold.

Total contribution margin = ($20 x 1,000) + ($75 x 400) = $20,000 + $30,000 = $50,000

Total units sold = 1,000 + 400 = 1,400

Weighted-average contribution margin = $50,000 ÷ 1,400 = $35.71

Therefore, the best choice is C, as none of the given answer choice matches with the calculated answer. However, the closest answer to the calculated weighted-average contribution margin is C) $95.50.

Riverside Has Gathered the Following Data in Order to Calculate