Write down the formula for calculating the weighted average contr… - Vidyadip

Question

Write down the formula for calculating the weighted average contribution margin per unit for the sales mix.

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Answer

Suppose a manufacturing unit produces three products A, B, and C. Then the following formula is used:
Product A CM (contribution mix) per unit × Product a sales mix percentage + Product
B CM per unit × Product B sales mix percentage + Product C
CM per unit × Product C sales mix percentage = Weighted average unit contribution margin

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