Which of the following formulas would be best for calculating the total contribution margin?
A) sales revenue - total variable cost
B) $\frac{\text { unit price - variable cost per unit }}{\text { unit price }}$
C) price per unit - total cost per unit
D) $\frac{\text { revenueper product }}{\text {overall revenue }}$

Question

Which of the following formulas would be best for calculating the total contribution margin?
A) sales revenue - total variable cost
B) $\frac{\text { unit price - variable cost per unit }}{\text { unit price }}$
C) price per unit - total cost per unit
D) $\frac{\text { revenueper product }}{\text {overall revenue  }}$

Quizplus · Accepted Answer

The formula for contribution margin is sales revenue minus total variable costs. Therefore, option A is the best formula for calculating the total contribution margin. The other options are either focused on unit contribution margin (B and C) or do not directly calculate contribution margin (D).

Which of the Following Formulas Would Be Best for Calculating unit price - variable cost per unit unit price \frac{\text { unit price - variable cost per unit }}{\text { unit price }} unit price unit price - variable cost per unit ​

Which of the Following Formulas Would Be Best for Calculating $\frac{\text { unit price - variable cost per unit }}{\text { unit price }}$