The Victor Company Sells Two Products A)$7750
B)$80

question 123

Multiple Choice

The Victor Company sells two products. The following information is provided: What is the weighted average contribution margin per unit?
$$\begin{array} { | l | r | r | } \hline & { \text { Product A } } & { \text { Product B } } \\\hline \text { Unit selling price } & \$ 100 & \$ 150 \\\hline \text { Unit variable cost } & \$ 30 & \$ 70 \\\hline \begin{array} { l } \text { Number of units produced and } \\\text { sold }\end{array} & 20,000 & 60,000 \\\hline\end{array}$$

• A)$77.50
• B)$80.00
• C)$75.00
• D)$72.50

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Definitions:

80/20 Rule

A principle suggesting that 80% of effects come from 20% of causes, often used in business and economics to focus efforts on the most productive inputs.

Firm's Sales

The total revenue generated from goods or services sold by a company within a specific period.

Firm's Customers

Individuals or organizations that purchase and use the products or services offered by a business.

Usage Rate

The frequency at which a product is used by the consumer.