Zest Soda, a local convenience store, sells soft drinks. It sells two large drinks for every small drink. A large drink sells for $1.70 with a variable cost of $0.40. A small drink sells for $1.10 with a variable cost of $0.30. What is the weighted average contribution margin?

Answer: Weighted average contribution margin would be 1.13.Step-by-step explanation:Since we have given that Cost of large drink = $1.70Variable cost of large drink = $0.40Cost of small drink = $ 1.10Variable cost of small drink = $0.30According to question, we get that It sells two large drinks for every small drink. Ratio would be 2:1.Cost of large drink becomes = $1.70-0.40 = $1.30Cost of small drink becomes = $1.10 - $ 0.30 = $0.80So, Weighted average contribution margin would be [tex]1.30\times \dfrac{2}{3}+0.80\times \dfrac{1}{3}\\\\=1.13[/tex]Hence, weighted average contribution margin would be 1.13.