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:

Selling Price

The amount of money for which something is sold in the market.

Book Value

The net value of a company's assets minus its liabilities, often compared to the market value to assess if a stock is under or overvalued.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and ability to meet short-term obligations.

Accounts Payable

Short-term liabilities or debts a company owes to its creditors for goods and services purchased on credit.