The contribution margin per unit is equal to the
A) difference between price and average variable cost.
B) difference between total revenue and total cost.
C) difference between price and average total cost.
D) price of a good.

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated as the difference between the selling price per unit and the variable cost per unit. This measures how much each unit sold contributes towards fixed costs and profit, after covering its variable costs.

The Contribution Margin Per Unit Is Equal to the