Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: $\begin{array}{lrrr}
& \text { Unit Sales Price } & \text { Unit Variable Costs } & \text { Unit Sales } \
\text { Product A } & \$ 150 & \$ 100 & 8,000 \
\text { Product B } & 100 & 60 & 2,000
\end{array}$ The weighted-average contribution margin is
A) $42.
B) $45.
C) $48.
D) $90.

Question

Lakeside has gathered the following data in order to calculate the weighted-average contribution margin: $\begin{array}{lrrr} 
& \text { Unit Sales Price } & \text { Unit Variable Costs } & \text { Unit Sales } \
\text { Product A } & \$ 150 & \$ 100 & 8,000 \
\text { Product B } & 100 & 60 & 2,000
\end{array}$ The weighted-average contribution margin is
A) $42.
B) $45.
C) $48.
D) $90.

Quizplus · Accepted Answer

The weighted-average contribution margin is calculated by finding the contribution margin for each product, multiplying by the proportion of total sales, and summing them. For Product A: ($150 - $100) * (8000/10000) = $40. For Product B: ($100 - $60) * (2000/10000) = $8. Total = $40 + $8 = $48.

Lakeside Has Gathered the Following Data in Order to Calculate