Other variable costs per unit subtracted from Total COGS per unit equals ________.
A) cost of goods sold per unit
B) contribution margin per unit
C) total other variable costs per unit
D) operating margin per unit

Question

Quizplus · Accepted Answer

Contribution margin per unit is calculated by subtracting the variable costs per unit from the selling price per unit. When subtracting other variable costs per unit from the total cost of goods sold (COGS) per unit, you're essentially calculating the portion of sales revenue that is not consumed by variable costs, thus contributing to covering fixed costs and profit, which aligns with the definition of contribution margin per unit.

Other Variable Costs Per Unit Subtracted from Total COGS Per