If the sales mix shifts to four units of Product A and one unit of Product B,then the weighted-average contribution margin will:

Question

Quizplus · Accepted Answer

The weighted-average contribution margin will decrease per unit if the sales mix shifts to more units of Product A and fewer units of Product B, assuming Product A has a lower contribution margin per unit than Product B. This is because the overall contribution margin is now more heavily influenced by the lower-margin product.

If the Sales Mix Shifts to Four Units of Product