On a profit-volume chart, the slope of the graph is equal to:

Question

Quizplus · Accepted Answer

The slope of a profit-volume chart represents the contribution margin per unit, which is the difference between the selling price and variable cost per unit. Thus, choice C (contribution margin per unit) is the best answer. Choices A (profit per unit) and D (fixed plus variable costs per unit) are incorrect because they do not consider the impact of variable costs on profitability. Choice B (variable costs per unit) is also incorrect because it only represents the cost component of the equation, not the profit component.

On a Profit-Volume Chart, the Slope of the Graph Is