Q248
Difference between variable cost per unit and selling price can be classified as
A.
contribution margin per unit
AnswerB.
variable margin per unit
C.
selling margin per unit
D.
sale per unit
Answer: Option A
Solution
Answer: Option A
Solution:
Difference between variable cost per unit and selling price can be classified as contribution margin per unit. Contribution margin per unit is the net amount that each additional unit sold contributes towards a company’s fixed costs and profit.