The contribution margin is defined as the difference between the:
A) Unit sales price and the total cost per unit.
B) Unit sales price and the variable cost per unit.
C) Variable and fixed costs per unit.
D) Pre-tax and after-tax costs per unit.
E) Unit sales price and the pre-tax cost per unit.

Question

Quizplus · Accepted Answer

The contribution margin is calculated as the difference between the unit sales price and the variable cost per unit. This figure is used to cover fixed costs and to generate profit.

The Contribution Margin Is Defined as the Difference Between The