The budgeted average unit contribution margin is the budgeted total contribution margin divided by the:
A)budgeted total units
B)budgeted total price
C)budgeted fixed expenses
D)budgeted variable expenses

Question

Quizplus · Accepted Answer

The budgeted average unit contribution margin is calculated by dividing the budgeted total contribution margin by the budgeted total units. This gives the amount of contribution margin that each unit is expected to generate, on average, in order to cover fixed expenses and generate a profit. The other answer choices are incorrect because they do not involve dividing the total contribution margin by the total units.

The Budgeted Average Unit Contribution Margin Is the Budgeted Total