What are the three elements of the profit equation?

Question

Quizplus · Accepted Answer

The three elements of the profit equation are the selling price per unit, variable cost per unit, and total fixed costs. The selling price per unit and variable cost per unit determine the contribution margin per unit, which is then multiplied by the number of units sold to calculate total contribution margin. Total contribution margin is then subtracted from total fixed costs to determine the profit or loss.

What Are the Three Elements of the Profit Equation