The Difference Between Sales Price and Unit Variable Cost Is

question 82

Multiple Choice

The difference between sales price and unit variable cost is the:

• A)Unit contribution margin.
• B)Total contribution margin.
• C)Contribution margin ratio.
• D)Margin of safety.
• E)Breakeven point.

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Definitions:

Criterion

A standard, rule, or test by which something can be judged or measured, often used in decision-making or evaluation processes.

Core Principles

Fundamental beliefs or values that serve as the foundation for behavior, decision-making, and actions within an organization or individual's life.

Professional Selling

The process and activities required to effectively develop, manage, enable, and execute a mutually beneficial, interpersonal exchange of goods and/or services for equitable value.

Break-Even Point

the point at which total costs and total revenue are equal, meaning a business is neither making a profit nor taking a loss, serving as a critical financial analysis metric.