Question

    How is the contribution margin per unit

    calculated?
    A Selling Price - Fixed Cost Correct Answer Incorrect Answer
    B Selling Price - Variable Cost Correct Answer Incorrect Answer
    C Selling Price - Total Cost Correct Answer Incorrect Answer
    D Selling Price - Interest Cost Correct Answer Incorrect Answer
    E None of the aboce Correct Answer Incorrect Answer

    Solution

    The Contribution Margin is the incremental profit earned on each unit of product sold, calculated by subtracting direct variable costs from revenue. As such, Contribution margin = Selling price per unit – Variable cost per unit

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