The price/unit minus the variable cost/unit is
A)per unit profit.
B)the break-even point.
C)the Z value.
D)EOL.

Question

Quizplus · Accepted Answer

The difference between the price per unit and the variable cost per unit is the contribution margin per unit. This contribution margin per unit is used to cover fixed costs and ultimately, generate profit. Therefore, the price per unit minus the variable cost per unit is equal to the per unit profit.

The Price/unit Minus the Variable Cost/unit Is