A Product's Contribution Margin Per Unit Is the Excess Value

question 161

True/False

A product's contribution margin per unit is the excess value of the selling price per unit over the fixed cost of obtaining and selling each unit.

---

Definitions:

Disposable Income

Money available to households for personal spending and saving after deducting their income taxes.

Income-Expenditure Framework

An economic model describing the relationship between an economy's total income and the spending levels that determines its equilibrium output.

Aggregate Expenditures

The total amount of spending in an economy, including consumption, investment, government spending, and net exports.

Real Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, adjusted for inflation.