Margin Per Unit Equals ________

question 59

Multiple Choice

Margin per unit equals ________

• A)demand x sales
• B)total sales contribution - marketing and sales expenses
• C)price - fixed unit cost
• D)price - variable unit cost
• E)price - total unit cost

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Definitions:

Direct Materials Cost

The total cost of all the raw materials used in the production of a product or service.

Machine-hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and allocating expenses based on machine usage.

Overapplied Overhead

A situation where the allocated or applied manufacturing overhead cost is more than the actual manufacturing overhead cost incurred.

Underapplied Manufacturing Overhead

A situation where the actual manufacturing overhead costs exceed the overhead allocated to products.