Assuming a company's income statement shows a net operating income, which of the following statements is true regarding the contribution margin per unit?

Question

Quizplus · Accepted Answer

The contribution margin per unit indicates the amount that net operating income will increase with the sale of each additional unit. It is calculated by deducting variable costs from the selling price per unit. It does not depend on the number of units sold or purchased, as it remains constant per unit.

Assuming a Company's Income Statement Shows a Net Operating Income