Weighted Average Unit Contribution Margin is defined as the weighted average contribution margin in break.

The weighted average contribution margin is the average amount that a group of products or services contribute to paying down the fixed costs of a business.Breakeven analysis uses the concept to project profit levels for various amounts of sales.Projections based on this average margin incorporate the assumption that the same mix of product sales and margins will apply in the future, which is not necessarily the case.

The total amount of variable expenses related to the items in the measurement group is divided by the number of units sold to arrive at the aggregate sales figure.Variable expenses are those that vary with sales.If a sale is generated, an expense is incurred.Variable expenses are examples.

Weighted average contribution margin is the number of units sold.

50% of ABC International's sales come from two product lines.Line A has $100,000 and Line B has $50,000.ABC sold 15,000 units.The weighted average contribution margin for the entire business is $10/unit.

The weighted average contribution margin is used to calculate the number of units that a business needs to sell in order to cover its fixed expenses and break even.Cost-volume-profit analysis is a type of analysis.

ABC International has calculated the contribution margin based on the current sales of 15,000 units.The business is currently losing $50,000 per period because it has $200,000 of fixed costs.ABC can use the weighted average contribution margin to calculate how many units it needs to sell in order to break even.In order to break even, the fixed costs of $200,000 must be divided by a contribution margin of $10 per unit.