Discussion
A firm sells two products in a 3 to 1 mix with contributions of 20 and 40. Its weighted average contribution per unit is
Answer: D
Correct answer: 25
The mix is three of the first for every one of the second, so the weighted average is
\[ \frac{3(20) + 1(40)}{4} = \frac{100}{4} = 25 \]The simple average of 30 would be right only if the two sold in equal numbers, and it overstates the contribution because the lower-margin product dominates the mix.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development