If a company makes two products, R1 and R2, what is the formula for the weighted-average unit contribution margin?

The weighted-average unit contribution margin formula is calculated by dividing the total contribution margin of the two products (R1 and R2) by the total number of units of each product. Mathematically, it can be written as: Weighted-Average Unit Contribution Margin = (Contribution Margin of R1 + Contribution Margin of R2) / (Number of Units of R1 + Number of Units of R2) The contribution margin of a product is calculated by subtracting all variable costs associated with producing the product from the product's selling price. Because the formula utilizes the contribution margins from each product, this number will reflect the average contribution margin per unit for the company's total output. This can then be used to assess the company's overall profitability.