Which of the Following Is the Correct Formula to Use

question 32

Multiple Choice

Which of the following is the correct formula to use to calculate the contribution margin per unit?

• A)Selling price per unit less fixed costs and variable costs per unit.
• B)Selling price per unit less fixed costs per unit.
• C)Selling price per unit less variable costs per unit.
• D)None of the answers is correct.

---

Definitions:

License

A legal permission allowing the licensee to do something that would otherwise be prohibited, often concerning intellectual property or specific activities.

Temporary Right

A limited-time entitlement or permission granted to an individual or entity for a specific purpose or activity.

Specific Purpose

An intention or objective designated for a particular activity, fund, or project, often stated to define its scope.

Conveyance

The legal process of transferring property, including real estate, from one party to another.