Margin per unit equals ________
A)demand x sales
B)total sales contribution - marketing and sales expenses
C)price - fixed unit cost
D)price - variable unit cost
E)price - total unit cost

Question

Quizplus · Accepted Answer

Margin per unit is calculated as the selling price minus the variable cost per unit. The fixed costs are already covered by the selling price, so the difference between the selling price and the variable cost is the contribution margin per unit. Therefore, choice D, price minus variable unit cost, is the correct formula for calculating margin per unit.

Margin Per Unit Equals ________