The contribution margin per unit is divided by contribution margin percentage to calculate ______________?
Correct answer: D. selling price
- A. percentage price
- B. margin price
- C. contribute price
- D. selling price
Explanation
Selling price equals contribution margin per unit divided by the contribution margin ratio or percentage. The percentage shows what portion of each sales dollar remains after variable costs.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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