A product's weighted average contribution margin per unit is calculated by multiplying the contribution margin per unit by the % sales mix for that product.

Question

Quizplus · Accepted Answer

The weighted average contribution margin per unit is indeed calculated by multiplying the contribution margin per unit of each product by its percentage of total sales (sales mix), and then summing these products for all items. This approach reflects the average contribution margin per unit, taking into account the proportion of each product sold.

A Product's Weighted Average Contribution Margin Per Unit Is Calculated