Isabellas,Inc

question 226

Multiple Choice

Isabellas,Inc.,a local convenience store,sells soft drinks.It sells two large drinks for every small drink.A large drink sells for $3.00 with a variable cost of $0.80.A small drink sells for $1.00 with a variable cost of $0.50.The weighted average contribution margin is ________.(Round any intermediate calculations and your final answer to the nearest cent.)

• A) $1.35 per drink
• B) $4.90 per drink
• C) $1.63 per drink
• D) $2.20 per drink

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Definitions:

Lean Environment

A management philosophy focusing on reducing waste and improving efficiency in the production process, often resulting in cost savings and higher quality products.

Operations

Activities carried out by a company to produce, buy, sell goods or services in the most efficient and effective manner.

Management

The act of directing and controlling a group or organization to achieve goals.

Inventory Reduction

A decrease in the amount of inventory a company holds, often achieved through sales or more efficient production processes.