Lambert Company sells two products-X and Y.Lambert predicts that it will sell 2,500 units of X and 2,000 units of Y during the next period.The unit contribution margins are $4.00 and $5.10,respectively.What is the weighted-average unit contribution margin?
A) $4.49 per product
B) $4.55 per product
C) $5.10 per product
D) $4.00 per product

Question

Quizplus · Accepted Answer

A) Weighted contribution = ($4.00 × 2,500 units) + ($5.10 × 2,000 units) = $10,000 + $10,200 = $20,200
Weighted-average contribution margin per unit = $20,200 / 4,500 units = $4.49 per unit

Lambert Company Sells Two Products-X and Y