When an organisation produces and sells a number of different products or services, the weighted average contribution margin per unit is used to determine the breakeven point or target profit in units.

Question

Quizplus · Accepted Answer

This statement is true. Using the weighted average contribution margin per unit takes into account the varying profit margins of each product or service that an organization produces and sells. It is a useful tool for determining the level of sales needed to cover fixed costs and achieve a desired level of profit.

When an Organisation Produces and Sells a Number of Different