Becky's Bakery sells three large muffins for every two small ones. A small muffin sells for $3.50 with a variable cost of $2.00. A large muffin sells for $6.00 with a variable cost of $3.00. What is the weighted-average contribution margin? (Round any intermediate calculations and your final answer to the nearest cent.) $2.40 per muffin $4.50 per muffin $4.75 per muffin $2.25 per muffin

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Troy Poole

27 November, 02:19

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Ruth Mcneil · Answer 1

Contribution margin small muffin = 3.5-2 = $1.5

Contribution margin large muffin = 6-3 = $3

(2/5*1.5) + (3/5*3) = $2.40