The contribution margin per unit is the price at which a unit must be sold in order for the company to break even.

Question

Quizplus · Accepted Answer

The contribution margin per unit is the difference between the sales price and variable cost per unit. It represents the amount of money that is available to cover fixed expenses and contribute to profits after variable expenses have been covered. It is not the price at which a unit must be sold to break even.

The Contribution Margin Per Unit Is the Price at Which