The contribution margin is equal to the sales price per unit less the variable cost per unit.

Question

Quizplus · Accepted Answer

This is correct. The contribution margin is the amount of money that is available to cover fixed costs after variable costs have been paid for. It is calculated by subtracting the total variable costs from the total revenue or sales. To calculate the contribution margin per unit, divide the contribution margin by the number of units sold.

The Contribution Margin Is Equal to the Sales Price Per