The Victor Company sells two products.The following information is provided: $$\begin{array} { l r r r r }
\text { Unit selline price } & \$ & 100 & \$ & 150 \
\text { Unit variable cost } & \$ & 30 & \$ & 70 \
\text { Number of units produced and sold } & & 20,000 & & 60,000
\end{array}$$ What is the weighted average contribution margin per unit?
A) $77.50
B) $80.00
C) $75.00
D) $72.50

Question

The Victor Company sells two products.The following information is provided: $$\begin{array} { l r r r r } 
\text { Unit selline price } & \$ & 100 & \$ & 150 \
\text { Unit variable cost } & \$ & 30 & \$ & 70 \
\text { Number of units produced and sold } & & 20,000 & & 60,000
\end{array}$$ What is the weighted average contribution margin per unit?
A) $77.50
B) $80.00
C) $75.00
D) $72.50

Quizplus · Accepted Answer

Weighted average contribution margin per unit = [(Contribution margin per unit of Product A * Units of Product A) + (Contribution margin per unit of Product B * Units of Product B)] / Total units sold= [($100 - $30) * 20,000 + ($150 - $70) * 60,000] / (20,000 + 60,000)= [$1400000 + $4800000] / 80,000= $77.50

The Victor Company Sells Two Products What Is the Weighted Average Contribution Margin Per Unit? A)

The Victor Company Sells Two Products What Is the Weighted Average Contribution Margin Per Unit?
A)