Contribution margin per unit is the amount by which a product's unit selling price exceeds its variable cost per unit.

Name: Contribution margin per unit is the amount by which a product's unit selling price exceeds its variable cost per unit.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

Contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price per unit. It represents the amount of revenue that is available to cover fixed costs and contribute towards profit.

Contribution Margin Per Unit Is the Amount by Which a Product's