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What is Sunland weighted-average contribution margin ratio

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Question - Sunland Bottle Shop has two divisions, Wine and Beer. The sales mix is 70% Wine and 30% Beer. Sunland's annual fixed costs are estimated at $319200. The average selling price in the Wine division is $15 with a variable cost of $6. The average selling price in the Beer division is $6 with a variable cost of $3. What is Sunland's weighted-average contribution margin ratio?

a) 53%

b) 57%

c) 60%

d) 30%

Reference no: EM132428672

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