To Find the Weighted Average Contribution Margin, a Company Adds

question 58

True/False

To find the weighted average contribution margin, a company adds up the individual unit contribution margins of the different products and then divides by the number of different products.

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Definitions:

Credit

An arrangement wherein a borrower receives something of value now and agrees to repay the lender at a later date, usually with interest.

Graphically

Refers to representing data or models visually using graphs or charts.

Spread

Compensation to the underwriter, determined by the difference between the underwriter’s buying price and offering price. Also, the gap between the interest rate a bank pays on deposits and the rate it charges on loans.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percent rate.