Which of the Following Would Not Be an Acceptable Way

question 28

Multiple Choice

Which of the following would not be an acceptable way to express contribution margin?

• A) Sales minus variable costs
• B) Sales minus unit costs
• C) Unit selling price minus unit variable costs
• D) Unit contribution margin divided by unit selling price

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Definitions:

Market Demand

The total amount of a product or service that all consumers in a market are willing and able to purchase at varying prices over a specified time period.

Market Supply

The total amount of a product or service that is available for purchase at any given price level in a market.

Equilibrium Price of X

The market price at which the quantity of a commodity demanded equals the quantity supplied, specifically for commodity X.

Demand for X

The desire and ability of consumers to purchase a specific product or service, denoted as "X."