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When a class is engaged in a literature focus unit:
Unit Contribution Margin
The difference between the selling price per unit and the variable cost per unit, indicating how much each unit sold contributes to fixed costs and profit.
Variable Costs
Expenses that fluctuate directly with the volume of production or sales, such as raw materials and direct labor costs.
Fixed Costs
Constant expenditures that do not change with the volume of production or sales, such as rent or salaries.
Contribution Margin Ratio
A measure expressing how a product's selling price exceeds variable costs, shown as a percentage of the sales price.
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