The unit contribution margin:
A)equals total sales revenue minus total variable costs.
B)equals total contribution margin times total units.
C)tells us how much each additional unit sold above the break-even point will contribute to profit.
D)equals overall profit per unit.

Question

Quizplus · Accepted Answer

The unit contribution margin indicates how much each additional unit sold contributes to covering fixed costs and generating profit once the break-even point is surpassed.

The Unit Contribution Margin