Selling price per unit less variable costs per unit is known as:

Question

Quizplus · Accepted Answer

Contribution margin represents the amount of money available to cover fixed costs and contribute to profits. It is calculated as selling price per unit less variable costs per unit. Direct cost is a cost that can be directly traced to a specific product or service. Avoidable cost is a cost that can be eliminated if a particular decision is made. Therefore, only the option A is the correct answer.

Selling Price Per Unit Less Variable Costs Per Unit Is