The weighted average contribution margin (WACM) is most useful when working with which of the following?
A) Products with low variable costs
B) Products with high contribution margins
C) Multiple products or product lines with a known sales mix
D) Multiple products that are profitable even with high break-even points

Question

Quizplus · Accepted Answer

When working with multiple products and a sales mix of these products, an average contribution margin, called the weighted average contribution margin (WACM), is needed for the break-even calculation.

The Weighted Average Contribution Margin (WACM) Is Most Useful When