In the Equation: Y = Vx + F,what Term Represents

question 160

Multiple Choice

In the equation: y = vx + f,what term represents the variable cost per unit of activity? (Assume x represents the volume of activity.)

• A)f
• B)v
• C)y
• D)vx

---

Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted; it contributes towards covering fixed costs and generating profit.

Administrative Expenses

Costs associated with the general management of a business, such as salaries of senior executives, legal and financial charges, marketing, and office supplies.

Direct Materials

Materials that can be directly linked to the manufacturing of particular products or services.

Units Sold

The total quantity of products or services sold within a specific period, often used to measure business performance.