Question

Suppose that a firm makes two products, A and B. The sales mix in units for the period is 70% for A and 30 % for B. If the unit contribution margin for A is $8.04 and the unit contribution margin for B is $5.92, then the weighted-average unit contribution margin is:

Answer 1

Answer:

The weighted-average unit contribution margin is $7.40

Explanation:

The weighted average unit contribution margin is given by the below formula:

weighted-average unit contribution margin=Wa*Margin of A+Wb*Margin of B

Wa is the weight of product A=70% or 0.70

Margin of product A is $8.04

Wb is the weight of product B =30% or 0.30

Margin of product B is $5.92

weighted-average unit contribution margin=(0.70*$8.04)+(0.30*$5.92)

weighted-average unit contribution margin=$ 7.40  

Answer 2

The weighted-average unit contribution margin is $7.40

What is the weighted-average unit?

Although, The weighted average unit contribution margin is given by the below formula:

weighted-average unit contribution margin=Wa*Margin of A+Wb*Margin of B Wa is that the weight of product A=70% or 0.70

The margin of product A is $8.04

Wb is that the weight of product B =30% or 0.30

The margin of product B is $5.92

weighted-average unit contribution margin=(0.70*$8.04)+(0.30*$5.92)

weighted-average unit contribution margin=$ 7.40

Find out more information about weighted-average unit here:

https://brainly.com/question/13543092