The contribution margin for Brand X is $20 and for Brand Y $40 and the product mix is 5 Brand X models for each Brand Y model. The weighted average contribution margin per unit is $23.33.

Question

Quizplus · Accepted Answer

Weighted average contribution margin per unit = (Contribution margin per unit of Brand X * Number of units of Brand X + Contribution margin per unit of Brand Y * Number of units of Brand Y) / Total number of units= (20 * 5 + 40 * 1) / 6= 100 + 40 / 6= 140 / 6= 23.33Total contribution margin = Weighted average contribution margin per unit * Total number of units= 23.33 * 6= $140

The Contribution Margin for Brand X Is $20 and for Brand