Which of the following would not be an acceptable way to express contribution margin?
A) Sales minus variable costs
B) Sales minus unit costs
C) Unit selling price minus unit variable costs
D) Contribution margin per unit divided by unit selling price

Question

Quizplus · Accepted Answer

Unit costs typically include both fixed and variable costs, so subtracting unit costs from sales would not accurately represent the contribution margin, which only considers variable costs.

Which of the Following Would Not Be an Acceptable Way