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Ivenika [448]
4 years ago
11

Colossal Beverages Company sells two​ products, A and B. Mist predicts that it will sell 2 comma 500 units of A and 2 comma 000

units of B during the next period. The unit contribution margins are $ 3.50 and $ 4.80 for products A and​ B, respectively. What is the weightedminusaverage unit contribution​ margin? (Round your answer to the nearest​ cent.)
Business
1 answer:
REY [17]4 years ago
4 0

Answer:

=$4.07 unit

Explanation:

<em>Weighted average contribution margin is applicable where a business sells more than one product in a constant mix or proportion. It gives an idea of how much is made on the average as contribution from th sale of a unit.</em>

It is determined as follows

Step 1

<em>Total contribution from a mix and total units</em>

<em>Total contribution from a mix</em>=(2500 × $3.50) + (2,000 × $4.80)

=$18,350

<em>Total units in a mix</em> = 2,500+ 2,000 = 4,500 units

Step 2

<em>weighted average unit contribution</em>

=$18,350/4,500units

=$4.07 unit

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Assume that a​ firm's marginal cost is​ $10 and the elasticity of demand is minus2. We can conclude that the​ firm's profit-maxi
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A(n) _______________ uses available technology to work from home or an off-site location.​
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