Question

Smarty Pants Company sells two products, green camouflage pants and orange camouflage pants. Smarty Pants predicts that it will sell 900 pairs of green pants and 1800 pairs of orange pants in the next period. The unit contribution margins for green pants and orange pants are $8.25 and $9.00, respectively. What is the weighted average unit contribution margin

Answer 1

Answer:

$8.75

Explanation:

Data provided

Green pants = 900 pair

orange pants = 1,800 pair

Units Green pants = $8.25

Units orange pants = $9.00

The computation of weighted average contribution margin is shown below:-

Total of Pair = 900 + 1,800

= 2,700

Weighted average contribution margin =  Unit Contribution × Sales mix

($8.25 × 900 ÷ 2,700) + ($9.00 ×  1,800 ÷ 2,700)

= $2.75 + $6

= $8.75

Answer 2

Answer:

8.75 is the answer.

Explanation: