The Difference Between the Selling Price Per Unit and the Variable

question 2

Multiple Choice

The difference between the selling price per unit and the variable cost per unit is the:

• A)contribution to the bottom line
• B)contribution to revenue
• C)contribution margin
• D)contribution to EBIT

---

Definitions:

Typical Welfare

Governmental support programs designed to assist individuals or families in meeting basic needs, such as food, shelter, and healthcare.

Family

A social unit consisting of individuals related by blood, marriage, or other forms of partnership and commitment.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Economic Rent

It is the payment to an owner or factor of production in excess of the costs needed to bring that factor into production. In other words, it's the extra income earned from a resource without investing in additional effort or cost.