The Contribution Margin Is Equal to Price Per Unit Minus

question 48

True/False

The contribution margin is equal to price per unit minus total costs per unit.

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Definitions:

Ordinary Annuity

A series of equal payments made at equal intervals of time, with the first payment occurring at the end of the period.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Compounded Quarterly

The method of calculating interest where the interest is added to the principal sum four times a year.

Compounded Annually

A method of calculating interest where the interest earned over a year is added to the principal, and the sum becomes the principal for the next year.