The difference between selling price per unit and variable costs per unit is the:Multiple ChoiceGross margin per unit.Fixed cost per unit.Margin of safety per unit.Contribution margin per unit.Gross profit from sales.
Question
The difference between selling price per unit and variable costs per unit is the:Multiple ChoiceGross margin per unit.Fixed cost per unit.Margin of safety per unit.Contribution margin per unit.Gross profit from sales.
Solution
The difference between selling price per unit and variable costs per unit is the Contribution margin per unit.
Similar Questions
In cost-volume-profit analysis, the contribution margin per unit is:Multiple ChoiceThe same as the contribution margin ratio.Selling price per unit less total cost per unit.Selling price per unit less variable costs per unit.Selling price per unit less fixed costs per unit.Selling price per unit less cost of goods sold per unit.
The contribution margin per unit equals:Group of answer choicesselling price - fixed costs per unitselling price - variable costs per unitfixed cost - contribution margin ratioselling price - costs of good sold
If selling price is $20 per unit and variable costs are $14 per unit, the contribution margin is:Group of answer choices$1.43 per unit.$280.$6 per unit.$34 per unit.
If a company increases production without any increase in fixed costs:Group of answer choicesUnit total cost will increase.Fixed cost per unit will increase.Variable costs per unit will decrease.Gross margin per unit will increase when the units are sold.
29.Contribution per unit is equal to: A. Selling price per unit – variable cost per unit B. Selling cost per unit + variable cost per unit C. Selling cost per unit x variable cost per unit D. Selling cost per unit / variable cost per unit
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