The weighted average contribution margin will always be the same as the contribution margin of the highest-volume product.

Question

Quizplus · Accepted Answer

The weighted average contribution margin is the sum of the products' contribution margins multiplied by their respective proportions of sales. This means that the highest-volume product may not have the highest contribution margin, and as a result, the weighted average contribution margin may be different from the contribution margin of the highest-volume product. Therefore, the statement is false.

The Weighted Average Contribution Margin Will Always Be the Same