Weighted-average budgeted contribution margin per unit is:
A) Actual total contribution margin/actual total units.
B) Actual total contribution margin/budgeted total units.
C) Budgeted total contribution margin/actual total units.
D) Budgeted total contribution margin/budgeted total units.
E) Sum of budgeted contribution margin per unit of all products/number of products.

Question

Quizplus · Accepted Answer

Weighted-average budgeted contribution margin per unit is calculated by dividing the budgeted total contribution margin by the budgeted total units. This is because it takes into account the expected contribution margin for each unit produced, weighted by the number of units produced.

Weighted-Average Budgeted Contribution Margin Per Unit Is