To Compute the Unit Contribution Margin, ________ Should Be Subtracted

question 38

Multiple Choice

To compute the unit contribution margin, ________ should be subtracted from the sales price per unit.

• A) only variable period costs
• B) only variable inventoriable product costs
• C) all variable costs
• D) all fixed costs

---

Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by many people simultaneously without reducing the amount available to others.

Market Failure

A situation in which a market left on its own fails to allocate resources efficiently.

Free-Ride

A situation in which an individual benefits from resources, goods, or services without contributing to the cost.

Private Markets

Markets where transactions occur directly between parties without public exchange involvement, often characterized by less regulation.