To find the weighted average contribution margin,a company adds up the individual unit contribution margins of the different products and then divides by the total number of different products.

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To find the weighted average contribution margin, not only the unit contribution margin of each product is considered, but also the proportion of the total sales revenue generated by each product. Therefore, it is not sufficient to simply divide the sum of unit contribution margins by the number of products. The weighted average contribution margin is calculated by dividing the total contribution margin by the total sales revenue.

To Find the Weighted Average Contribution Margin,a Company Adds Up