The difference between the unit sales price and the variable cost per unit is called:
A) Operating leverage.
B) The contribution margin.
C) The gross proﬁt.
D) The net proﬁt.
E) The marginal revenue.

Question

Quizplus · Accepted Answer

The difference between the unit sales price and the variable cost per unit is known as the contribution margin. It represents the amount that each unit sold contributes to covering the fixed costs and generating profit.

The Difference Between the Unit Sales Price and the Variable