Weighted Average Contribution Margin

(redirected from Weighted Average Contribution Margins)

Weighted Average Contribution Margin

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.
Full browser ?