Colossal Beverages Company sells two products, A and B. Mist predicts that it will sell 3,000 units of A and 2,000 units of B during the next period. The unit contribution margins are $3.50 and $5.00 for products A and B, respectively. What is the weighted - average unit contribution margin? (Round your answer to the nearest cent.)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7MC: Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and...
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Colossal Beverages Company sells two products, A and B. Mist predicts that it will sell 3,000 units of A and 2,000 units of B during the next period. The unit contribution margins are $3.50 and $5.00 for products A and B, respectively. What is the
weighted - average unit contribution margin? (Round your answer to the nearest cent.)
O A. $8.50
O B. $4.40
OC. $4.25
O D. $4.10
Transcribed Image Text:Colossal Beverages Company sells two products, A and B. Mist predicts that it will sell 3,000 units of A and 2,000 units of B during the next period. The unit contribution margins are $3.50 and $5.00 for products A and B, respectively. What is the weighted - average unit contribution margin? (Round your answer to the nearest cent.) O A. $8.50 O B. $4.40 OC. $4.25 O D. $4.10
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