Barkley Company sells two products, red cups and black mugs

Accounting Feb 23, 2021

Barkley Company sells two products, red cups and black mugs. Barkley predicts that it will sell 2,500 red cups and 1,000 black mugs in the next period. The unit contribution margins for red cups and black mugs are $2.80 and $3.50, respectively. What is the weighted average unit contribution margin?

A) $2.33

B) $7.00

C) $3.00

D) $1.00

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