Using the information below, calculate the weighted average contribution margin. Round your answer to two decimal places.

Product A

Product B

Contribution margin

$61

$37

Sales mix

40%

60%

Fixed costs $30 000

Question

Using the information below, calculate the weighted average contribution margin. Round your answer to two decimal places.

Product A

Product B

Contribution margin

$61

$37

Sales mix

40%

60%

Fixed costs $30 000

BlackTom AI · Accepted Answer

To compute the weighted average contribution margin, I first identify the contribution margins and the sales mix for each product.
Product A has a contribution margin of $61 and a sales mix of 40% (0.40).
Product B has a contribution margin of $37 and a sales mix of 60% (0.60).
Next, I multiply each product's contribution margin by its respective sales mix: 61 × 0.40 = 24.40 and 37 × 0.60 = 22.20.
Then, I sum these weighted values to obtain the overall weighted average contribution margin: 24.40 + 22.20 = 46.60.
Since the request is to round to two decimal places, 46.60 is already at two decimals, so no further rounding is needed.
Note that fixed costs are not involved in calculating the weighted average contribution margin; they would be used later to determine profitability or break-even analysis, but they do not affect the contribution margin per unit blend here.

Using the information below, calculate the weighted average contribution margin. Round your answer to two decimal places. Product A Product B Contribution margin $61 $37 Sales mix 40% 60% Fixed costs $30 000 简答题

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