Profit is the unit contribution margin multiplied by the number of units minus the fixed component of the total costs (TC).Profit is TR minus TC,however at the unit contribution margin V (variable cost)has already been removed;therefore the above statement is true.

Question

Quizplus · Accepted Answer

The statement correctly defines profit as the unit contribution margin multiplied by the number of units minus the fixed component of total costs. The formula TR (total revenue) minus TC can also be used to calculate profit, but it includes all costs, both fixed and variable. However, the statement clarifies that the unit contribution margin already accounts for the variable costs (V), so the two formulas are equivalent.

Profit Is the Unit Contribution Margin Multiplied by the Number