The Difference Between Sales Price Per Unit and Variable Cost

question 146

Multiple Choice

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

• A) Gross profit from sales.
• B) Gross margin per unit.
• C) Fixed cost per unit.
• D) Margin of safety per unit.
• E) Contribution margin per unit.

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Definitions:

Relationship-Specific Investments

See Specific investments.

Organizational

Pertaining to the structure and function of an organization, including its processes, policies, and personnel management.

Contractual Forms

denotes the various arrangements and agreements under which businesses and individuals engage in transactions, outlining the terms and conditions of their exchanges.

Average Variable Cost

The total variable cost divided by the quantity of output produced, representing the variable cost per unit of output.