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

Question

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

Quizplus · Accepted Answer

Weighted average contribution margin per unit = (Total contribution margin / Total units sold)= [(100 - 30) * 20,000 + (150 - 70) * 60,000] / (20,000 + 60,000)= [1400000 + 4800000] / 80000= 6200000 / 80000= $77.50

The Victor Company Sells Two Products A)$7750 B)$80

The Victor Company Sells Two Products A)$7750
B)$80