Which of the following generates the contribution margin?
A)Variable cost per unit - fixed cost per unit
B)Selling price per unit - fixed cost per unit
C)Selling price per unit - variable cost per unit
D)Fixed cost per unit - Selling price per unit

Question

Quizplus · Accepted Answer

The contribution margin is the amount that remains after deducting variable costs from sales revenue. Therefore, the formula for calculating the contribution margin is Selling price per unit - variable cost per unit.

Which of the Following Generates the Contribution Margin