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

Question

Quizplus · Accepted Answer

Contribution margin is the amount that contributes to covering fixed costs and generating profits after deducting the variable costs from the selling price per unit. Direct cost refers to the expenses that can be directly attributed to the production of goods or services. Avoidable cost is a cost that can be eliminated by choosing a different course of action. Therefore, the correct option is A.

Selling Price Per Unit Less Variable Costs Per Unit Is