Reynold Coffee Sells Three Large Coffees for Every Two Small

question 181

Multiple Choice

Reynold Coffee sells three large coffees for every two small ones. A small coffee sells for $4 per cup, with a variable cost of $2 per cup. A large coffee sells for $5 per cup with a variable cost of $3 per cup. What is the weighted-average contribution margin?

• A) $2.00
• B) $0.40
• C) $7.20
• D) $0.50

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