The Local Convenience Store Sells Soft Drinks

question 39

Multiple Choice

The local convenience store sells soft drinks. It sells two large drinks for every small drink. A large drink sells for $1.50, with a variable cost of $0.60. A small drink sells for $1.00 with a variable cost of $0.50. What is the weighted-average contribution margin? (Please round to the nearest cent.)

• A) $0.77
• B) $0.65
• C) $0.70
• D) $0.45

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Definitions:

Actual Outcome

The real result or end-product of a process, as opposed to the expected or theoretical outcome.

Calories

A measure of energy in food, scientifically defined as the amount of energy needed to raise the temperature of 1 kilogram of water by 1 degree Celsius.

Marginal Utility

refers to the additional satisfaction or utility gained from consuming one more unit of a good or service.

Millionaires

Millionaires are individuals whose net worth or wealth is equal to or exceeds one million units of currency.