The Weighted-Average Contribution Margin Is Computed by Multiplying Each Product's

question 108

True/False

The weighted-average contribution margin is computed by multiplying each product's unit contribution margin by the sales mix percentage of each product.

---

Definitions:

Returns To Scale

A concept in economics that describes how a proportionate increase in all inputs affects the level of output.

Variable Cost

A cost that increases when the firm increases its output and decreases when the firm reduces its output.

Short Run

Describes a period during which at least one factor of production is fixed, limiting the ability of a firm to adjust to changes in market demand or supply conditions.

Baking Supplies

Baking supplies encompass all tools, ingredients, and materials used in baking, ranging from flour and sugar to ovens and mixing tools.