Question

Sally manages a small kiosk that sells two products with a sales mix in terms of...

Sally manages a small kiosk that sells two products with a sales mix in terms of units sold of 25% and 75% and with respective unit contribution margins of $240 and $80. The weighted-average unit contribution margin for the kiosk is

  • A : $160.

  • B : $120.

  • C : $60.

  • D : $200.

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Answer #1

Weighted-average unit contribution margin = 240*25% + 80*75%

= $120

Option B. is correct answer.

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