Contribution Margin Per Unit Is the Shortage of Revenue Per

question 120

True/False

Contribution margin per unit is the shortage of revenue per unit over variable cost per unit.

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Definitions:

Wasted Capacity

The portion of production capability or resources that goes unused or is not effectively utilized.

Margin Reduction

The decrease in the difference between the cost to produce a good or service and its selling price, often aiming to increase market competitiveness.

Backup Source

An alternative supplier or system used to ensure continuity in case the primary source fails or is unavailable.

Production Capacity

The maximum output that a manufacturing facility can produce under normal conditions, determined by available resources and constraints.