The contribution per unit is
A)price minus total costs.
B)price minus total variable cost.
C)price minus variable cost per unit.
D)total revenue minus total cost.
E)break-even quantity divided by total fixed costs.

Question

Quizplus · Accepted Answer

The contribution per unit is the amount that each unit sold contributes towards covering the fixed costs and generating profit. It is calculated by subtracting the variable cost per unit from the selling price per unit. Therefore, option C (price minus variable cost per unit) is the correct choice.

The Contribution Per Unit Is