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 will increase profit.
D)equals overall profit per unit.

Question

Quizplus · Accepted Answer

The unit contribution margin represents the amount each unit sold contributes to covering fixed costs and generating profit, thus indicating how much profit increases with each additional unit sold.

The Unit Contribution Margin