Weighted average contribution margin


Problem:

Lambardi Company sells 3 types of bags. Bag A sells for $17 and has variable cost of $9.00 per unit.

  • Bag B sells for $12 and has variable cost of $12.00 per unit.
  • Bag C sells for $6 and has variable costs of $6.00 per unit. Lambardi sells in a mix of 2 units of A, 3 units of B and 5 units of C.

Required:

Question: What is the weighted average contribution margin per unit for Lambardi?

Note: Please provide equation and explain comprehensively and give step by step solution.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Weighted average contribution margin
Reference No:- TGS0893014

Expected delivery within 24 Hours