Homework Answers
11)
Contribution Margin = Sales Price – Variable Cost
Weighted Average contribution margin = Contribution of product +
Weight of product in sales mix
Contribution Margin for QD = $150 - $105 = $45
Contribution Margin for QP = $195 - $120 = $75
Weighted-average Unit Contribution Margin = ($45 x 0.30) + ($75 x 0.70) = $66
So, Option C is correct.
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