The contribution margin in break -even analysis is derived by subtracting
A) variable cost per unit from fixed costs.
B) variable cost per unit from price.
C) fixed costs from variable costs.
D) price from variable costs.
E) fixed costs from price.

Question

Quizplus · Accepted Answer

The contribution margin is calculated by subtracting the variable cost per unit from the selling price per unit. This margin contributes towards covering the fixed costs and generating profit.

The Contribution Margin in Break -Even Analysis Is Derived by Subtracting