The difference between variable cost per unit and the selling price can be classified as _____________?
Correct answer: A. contribution margin per unit
- A. contribution margin per unit
- B. variable margin per unit
- C. selling margin per unit
- D. sale per unit
Explanation
Selling price less variable cost per unit is the contribution margin per unit. It is the amount available first to cover fixed costs and then to provide profit.
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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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If the contribution margin per unit is $800 and the selling price is $20000, then the contribution margin percentage will be _____________?
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