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how to calculate weighted average contribution margin. ABC International has two product lines each of which is responsible for 50 of sales. In order to calculate weighted-average contribution margin ratio we need some intermediate figures worked out in the following table such as total sales and proportion of each product in the sales mix.
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Lets Look at an Example. Weighted average unit contribution margin Contribution A x Sales mix A Contribution B x Sales mix B. Weighted average CM ratio Total Contribution Margin Total Sales 9525000 21750000 438.
Enter the selling price per unit variable cost per unit and total number of units sold into the contribution margin calculate.
ABC International has two product lines each of which is responsible for 50 of sales. How to Figure Out the Weighted-Average Contribution Margin. Thus the calculation of the weighted average contribution margin is. We can calculate the total sales weighted average contribution margin and the break-even point per unit or sales as below.
