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Landa Company sells 3 types of umbrellas. Umbrella A sells for $20 and has variable cost of $9.00 per unit. Umbrella B sells for $17.00 and has variable cost of $12.00 per unit. Umbrella C sells for $9.00 and has variable costs of $6.00 per unit. Carlos sells in a mix of 2 units of A, 3 units of B and 5 units of C. What is the weighted average contribution margin per unit for Carlos? (please show your work step by step)
A. $5.20B. $13.60C. $10.00D. $6.33
State pricing theory and no-arbitrage pricing theory
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