Becky's Bakery Sells Three Large Muffins for Every Two Small

question 146

Multiple Choice

Becky's Bakery sells three large muffins for every two small ones. A small muffin sells for $3.00, with a variable cost of $2.00. A large muffin sells for $5.00 with a variable cost of $2.50. What is the weighted-average contribution margin? (Round your intermediate calculations to one decimal place)

• A)$1.93 per muffin
• B)$1.75 per muffin
• C)$1.25 per muffin
• D)$1.90 per muffin

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Definitions:

Specially Manufactured Goods

Items that are produced to a buyer's personal specifications, which are not suitable for sale to others in the ordinary course of the seller's business.

Promissory Estoppel

A legal doctrine that prevents a party from withdrawing a promise made to another party if the latter has relied upon that promise to their detriment.

Oral Contracts

Agreements between parties that are spoken rather than written but are still legally binding.

Real Estate Mortgage

A legal agreement where real property is used as collateral for a loan.