The Contribution Margin Per Unit Is Equal to the Sales

question 11

True/False

The contribution margin per unit is equal to the sales price per unit minus the variable costs per unit.

---

Definitions:

Variable Cost

Costs that vary directly with the level of production or volume of goods and services produced.

Sales Mix

Sales mix is the proportion of different products or services that a company sells, impacting its overall profitability and strategic market positioning.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating the capacity to cover fixed costs and generate profit.

Fixed Costs

Costs that do not vary with the level of production or sales within a certain range, such as rent, salaries, and insurance.