The Winner's Circle sells two products, medals and trophies. The Winner's Circle predicts that it will sell 20,000 medals and 4,800 trophies in the next period. The unit contribution margins for medals and trophies are $7.00 and $14.75, respectively. What is the weighted average unit contribution margin?

$8.5 per unit

Explanation:

The computation of weighted average unit contribution margin is given below:-

the Weightage average Contribution margin per unit is  

= (Total contribution margin) ÷ (Total sales units)

= (20,000 × $7 + 4,800 × $14.75) ÷ (20,000 + 4,800)

= ($140,000 + $70,800) ÷ (24,800 units)

= ($210,800) ÷ (24,800 units)

= $8.5 per unit

answer; charters;