Colossal Beverages Company sells two products, A and B. Mist predicts that it will sell 3 comma 000 units of A and 1 comma 500 units of B during the next period. The unit contribution margins are $ 4.00 and $ 4.80 for products A and B, respectively. What is the weightedminusaverage unit contribution margin?

Weighted average contribution margin = $4.26

Explanation:

Giving the following information:

Colossal Beverages Company sells two products, A and B.

Mist predicts that it will sell 3,000 units of A and 1, 500 units of B during the next period. The unit contribution margins are $ 4.00 and $ 4.80 for products A and B, respectively.

Total units = 4,500

Weighted average sales A = 3,000/4,500 = 0.67

Weighted average sales B = 1,500/4,500 = 0.33

Weighted average contribution margin = (0.67*4 + 0.33*4.8) = $4.26