The Unit Variable Cost (UVC) Divided by Selling Price (P)

question 13

Multiple Choice

The unit variable cost (UVC) divided by selling price (P) is

• A) contribution margin (CM).
• B) fixed costs (FC).
• C) total cost (TC).
• D) total revenue (TR).
• E) price per unit of the product (P).

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Definitions:

Free Cash Flow

A financial metric that measures the amount of cash generated by a company after accounting for capital expenditures.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, indicating financial performance.

Cost of Goods Sold

Expenses directly linked to the creation of a company's sold goods, which include the costs of materials and labor.

Cash Paid

The total amount of cash disbursed by a company during a given period for various purposes, including operating expenses, asset purchases, or debt repayment.