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      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 โ€“ Variable cost per unit

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