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The Unit Contribution Margin Tells How Much Each Additional Unit

question 39

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The unit contribution margin tells how much each additional unit sold will contribute to covering variable costs.


Definitions:

Automotive Industry

A sector of the economy that designs, develops, manufactures, markets, and sells motor vehicles.

Technical Analysts

Investment professionals who evaluate securities by analyzing statistics generated by market activity, such as past prices and volume.

Resistance Level

A price point on a stock chart where selling pressure is thought to exceed buying pressure, making it difficult for the price to rise further.

The Dow Line

A reference to Dow Theory, focusing on the movements of the Dow Jones Industrial Average to predict market trends.

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