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The​ Winner's Circle sells two​ products, medals and trophies. The​ Winner's Circle predicts that it will sell​ 20,000 medals and​ 4,800 trophies in the next period. The unit contribution margins for medals and trophies are​ $7.00 and​ $14.75, respectively. What is the weighted average unit contribution​ margin?

Respuesta :

Answer:

$8.5 per unit

Explanation:

The computation of weighted average unit contribution​ margin is given below:-

the Weightage average Contribution margin per unit is  

= (Total contribution margin) ÷ (Total sales units)

= (20,000 × $7 + 4,800 × $14.75) ÷ (20,000 + 4,800)

= ($140,000 + $70,800) ÷ (24,800 units)

= ($210,800) ÷ (24,800 units)

= $8.5 per unit

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