Which of the following is the correct formula for the contribution margin per unit?
A)sales - total variable cost
B)unit selling price ÷ unit variable cost
C)(unit selling price - unit variable cost)÷ unit selling price
D)unit selling price - unit variable cost

Question

Quizplus · Accepted Answer

The correct formula for the contribution margin per unit is unit selling price - unit variable cost. This is because the contribution margin represents the amount of revenue that is available to cover fixed costs and contribute to profits after accounting for variable costs. So, the contribution margin per unit is the difference between the unit selling price and the unit variable cost.

Which of the Following Is the Correct Formula for the Contribution