Other variable costs per unit subtracted from Total COGS per unit equals ________.
A) Total other variable costs per unit
B) Contribution margin per unit
C) Cost of goods sold per unit
D) Operating profit per unit

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated by subtracting all variable costs per unit (including COGS and other variable costs) from the selling price per unit. Therefore, if you subtract other variable costs per unit from the total COGS per unit, you're not arriving at a meaningful figure in this context. The correct calculation for contribution margin per unit is sales price per unit minus total variable costs per unit.

Other Variable Costs Per Unit Subtracted from Total COGS Per