The contribution margin per unit is the difference between:
A)the selling price per unit and fixed costs
B)the fixed costs and the variable costs
C)the variable cost per unit and the selling price per unit
D)the variable costs and the number of units sold

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated as the selling price per unit minus the variable cost per unit. It does not take into account fixed costs. Therefore, option A is incorrect. Option B is the difference between total sales revenue and total variable costs, not the contribution margin per unit. Option D is also incorrect as it does not provide the necessary information to calculate the contribution margin per unit.

The Contribution Margin Per Unit Is the Difference Between