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Weighted average contribution margin ratio

The following monthly data are available for the W.K. Kent Company when it sold 20,000 units of Product A and 5,000 units of Product B:

Sales $220,000 $80,000 $300,000

Variable expenses 120,000 64,000 154,000

Contribution margin $100,000 $16,000 $116,000

Fixed expenses 36,540

Net operating income $ 79,460

The weighted-average contribution margin ratio is

A) 65.45%.
B) 38.67%.
C) 32.73%.
D) 4.64%

Solution Preview

The following monthly data are available for the W.K. Kent Company when it sold 20,000 units of Product A and 5,000 units of Product B:

Sales                                      $220,000                   $80,000                      $300,000

Variable expenses                 ...

Solution Summary

This solution calculates the weighted average contribution margin ratio.

$2.19