The Contribution Margin Per Unit Is Equal to The

question 23

Multiple Choice

The contribution margin per unit is equal to the:

• A) sales price per unit minus the total costs per unit.
• B) variable cost per unit minus the fixed cost per unit.
• C) sales price per unit minus the variable cost per unit.
• D) pretax profit per unit.
• E) aftertax profit per unit.

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Definitions:

Marginal Social Benefit

The increased benefit for the public from producing or consuming an extra unit of a good or service.

Marginal Social Benefit

The additional benefit to society as a whole from the consumption of one more unit of a good or service.

Marginal Social Cost

The additional cost incurred by society as a whole due to producing one more unit of a good or service.

Pollution

The contamination of the natural environment, leading to adverse effects on ecosystems and human health.