Reynold Coffee Sells Three Large Coffees for Every Two Small

question 29

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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Definitions:

Primary Group

A group with strong emotional ties and bonds that endure over time. This type of group tends to be more informal and intimate than other groups that individuals belong to. See also Secondary group.

Secondary Group

A group that is formal and impersonal, often organized around instrumental goals. See also Primary group.

Ethnocentrism

In intergroup relations, the tendency to regard one’s own group as the center of everything and to evaluate other groups in reference to it; the tendency to regard one’s in-group as superior to all out-groups.

Goal Isomorphism

The concept of having converging or similar objectives across different individuals, groups, or systems.