The unit contribution margin multiplied by the number of units sold is the:

Question

Quizplus · Accepted Answer

The formula for total contribution margin is unit contribution margin x number of units sold. Therefore, B is the correct answer. A is incorrect because segment margin only considers certain costs or revenues within a segment, not all units sold. C is incorrect because contribution margin ratio is the unit contribution margin divided by the unit selling price. D is incorrect because margin of safety is the amount by which sales can decrease before a business incurs losses. E is incorrect because breakeven point is the point at which revenues equal total costs, and is calculated by dividing fixed costs by the unit contribution margin.

The Unit Contribution Margin Multiplied by the Number of Units