Which statement best describes sales price per unit?
A) It is equal to the revenue.
B) It is the same as total cost.
C) It is the same as cost per unit plus income per unit.
D) It must be less than cost for the firm to earn income.

Question

Quizplus · Accepted Answer

Sales price per unit is the amount charged for a single unit of product. It is calculated by adding the cost per unit and a desired income per unit. Therefore, option C is the correct statement. Option A is incorrect because revenue includes all sources of income, not just sales price per unit. Option B is incorrect because total cost includes all costs, not just the cost per unit. Option D is also incorrect because sales price per unit must be greater than cost per unit for the firm to earn income.

Which Statement Best Describes Sales Price Per Unit