Zest soda, a local convenience store, sells soft drinks. it sells two large drinks for every small drink. a large drink sells for $1.70 with a variable cost of $0.40. a small drink sells for $1.10 with a variable cost of $0.30. what is the weighted average contribution margin?

Weighted average contribution margin would be 1.13.

Step-by-step explanation:

Since we have given that

Cost of large drink = $1.70

Variable cost of large drink = $0.40

Cost of small drink = $ 1.10

Variable cost of small drink = $0.30

According to question, we get that It sells two large drinks for every small drink.

Ratio would be 2:1.

Cost of large drink becomes = $1.70-0.40 = $1.30

Cost of small drink becomes = $1.10 - $ 0.30 = $0.80

So, Weighted average contribution margin would be

Hence, weighted average contribution margin would be 1.13.

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step-by-step explanation: