The Contribution Margin Per Unit Is the Difference Between

question 17

Multiple Choice

The contribution margin per unit is the difference between:

• A)the selling price per unit and fixed costs
• B)the fixed costs and the variable costs
• C)the variable cost per unit and the selling price per unit
• D)the variable costs and the number of units sold

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Definitions:

Goods Y

A placeholder term often used in economics to refer to a specific category of goods under discussion or analysis, contrasting with another category labeled "Goods X".

Indifference Curves

Graphical representations in economics showing combinations of goods that give the consumer equal satisfaction and utility.

Utility Function

A utility function is a mathematical representation of a consumer’s preferences, ranking different bundles of goods according to levels of satisfaction.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning they would derive the same level of satisfaction from any combination.