In Cost-Volume-Profit Analysis, the Unit Contribution Margin Is

question 25

Multiple Choice

In cost-volume-profit analysis, the unit contribution margin is:

• A) Sales price per unit less cost of goods sold per unit.
• B) Sales price per unit less unit fixed cost per unit.
• C) Sales price per unit less total variable cost per unit.
• D) Sales price per unit less unit total cost per unit.
• E) The same as the contribution margin ratio.

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Definitions:

Budget

An internal financial plan that forecasts expenses and income over a set period of time.

Strategic Financial Plan

A comprehensive evaluation and planning document that outlines an organization's financial goals and the strategies to achieve them.

Forecast

A prediction or estimate of future events or trends, often based on analysis of past and current data.

Liabilities

Debts that a firm owes to others.