As long as the selling price is greater than the ________ cost per unit,some contribution can be made to cover ________.

Question

Quizplus · Accepted Answer

The variable costs per unit are directly related to the production of each unit and typically include raw materials, labor, and other associated expenses. These costs vary depending on the level of production. Thus, as long as the selling price is higher than the variable cost, the company can make a contribution to cover its fixed costs, such as rent, utilities, and other expenses that do not change with production levels. Therefore, option B is the correct choice.

As Long as the Selling Price Is Greater Than the ________