The Local Convenience Store Sells Soft Drinks

Multiple Choice

The local convenience store sells soft drinks. It sells two large drinks for every small drink. A large drink sells for $1.50, with a variable cost of $0.60. A small drink sells for $1.00 with a variable cost of $0.50. What is the weighted-average contribution margin? (Please round to the nearest cent.)

A) $0.77
B) $0.65
C) $0.70
D) $0.45