Contribution margin can be expressed on a per unit basis as
A) the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.
B) the sum of the expenses of the firm that change with the quantity of a product that is produced and sold.
C) the difference between unit selling price and unit variable cost.
D) the average amount of money received for selling one unit of a product or simply the price of that unit.
E) the change in total cost that results from producing and marketing one additional unit of a product.

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated as the difference between the unit selling price and the unit variable cost.

Contribution Margin Can Be Expressed on a Per Unit Basis