Weighted Average Contribution Margin

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The average amount that each unit of product contributes to a company over the cost of producing it, after accounting for the different price of different products. For example, suppose half a company's sales come from Product A and half come from Product B. If the sale of each unit of Product A results in a $5 profit, and the sale of each unit of Product B results in $15, the weighted average contribution margin is $10.

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