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, the individual unit contribution margins of each product are multiplied by the proportion of that product's sales to total sales. These product-specific weighted contribution margins are then added together and divided by the total number of products.

To Find the Weighted Average Contribution Margin, a Company Adds