A product sells for $5,and has unit variable costs of $3.This product accounts for $20,000 in annual sales,out of the firm's total of $60,000.When performing multiproduct break-even analysis,what is the weighted contribution of this product?
A)0.133
B)0.200
C)0.40
D)0.667
E)$1.667

Question

Quizplus · Accepted Answer

Weighted contribution = (Contribution margin / Total sales) * Sales of the product= ((5 - 3) / 60,000) * 20,000= (2 / 60,000) * 20,000= 0.133

A Product Sells for $5,and Has Unit Variable Costs of $3.This