Question

selling price per unit less the variable cost per unit is what​

Answer 1

Answer:

The contribution margin is computed as the selling price per unit, minus the variable cost per unit. Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company.

Answer 2

contribution margin = Selling price-variable cost.

Information about contribution margin:

• The contribution margin is calculated by deducting variable cost per unit from the selling price per unit.
• It is also termed as dollar contribution per unit.
• It resembles how the product is contributed to the profit of the firm.

In-depth information:

• It shows the profit potentiality of a particular product.
• It also shows how much sales are acquired to cover the fixed costs.
• It is fundamental for break even analysis.

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