The contribution margin per unit is the difference between the ____.
A) selling price per unit and fixed costs
B) fixed costs and the variable costs
C) selling price per unit and the variable cost per unit
D) variable costs and the number of units sold

Question

Quizplus · Accepted Answer

Contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price per unit. Option A is incorrect because fixed costs are not included in the calculation of contribution margin per unit. Option B is incorrect because it is the difference between total revenue and total variable costs. Option D is incorrect because it does not take into account the selling price per unit.

The Contribution Margin Per Unit Is the Difference Between the ____