Final answer:
A product with a higher unit contribution margin does not necessarily have a higher contribution margin ratio compared to others because the ratio involves the margin's relationship to sales revenue, not just the absolute margin amount.
Step-by-step explanation:
When considering whether a product with a higher unit contribution margin will also have a higher contribution margin ratio than other products, the statement can be false.
The contribution margin of a product is determined by subtracting the variable costs per unit from the sales price per unit. The unit contribution margin alone does not account for the proportionate relationship between contribution margin and sales revenue. Rather, the contribution margin ratio, which is the contribution margin expressed as a percentage of sales revenue, offers a measure of how the revenues are contributing to the coverage of fixed costs and profit generation.
Therefore, while a product may have a higher unit contribution margin in dollar terms, it doesn't necessarily mean it will have a higher contribution margin ratio. The ratio depends on the price of the product relative to its variable costs and not just on the absolute contribution margin value.