What is the difference between price per unit and variable cost per unit?
A)Contribution margin
B)Contribution margin ratio
C)Net operating income
D)Contribution cost

Question

Quizplus · Accepted Answer

The difference between price per unit and variable cost per unit is known as the contribution margin. This figure represents the portion of sales revenue that is not consumed by variable costs and therefore contributes to covering fixed costs and generating profit.

What Is the Difference Between Price Per Unit and Variable