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Geneva Bottled Water Co . is assembling a weighted average contribution margin chart to better analyze differences between sales on 3 6 o z .

Geneva Bottled Water Co. is assembling a weighted average contribution margin chart to
better analyze differences between sales on 36oz. and the 20oz. bottled water. The sales
price per unit of the 36oz. bottled water is $3.69 while the sales price per unit of the 20oz.
bottled water is $1.08. The contribution margin per unit for the 36oz. bottle is $2.40 and the
contribution margin of the 20oz. bottle is $0.12. The 20oz. bottle outsells the 36oz. bottle by
a 5:1 relationship.
What is the weighted average contribution margin per unit on these two products?
A. $2.42
B. $2.02
C. $0.50
D. $3.00
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