The Difference Between Sales Price Per Unit and Variable Cost

question 146

Multiple Choice

The difference between sales price per unit and variable cost per unit is the:

• A) Gross profit from sales.
• B) Gross margin per unit.
• C) Fixed cost per unit.
• D) Margin of safety per unit.
• E) Contribution margin per unit.

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Definitions:

Globalization

Refers to the process of interaction and integration among people, companies, and governments worldwide, leading to the exchange of ideas, products, and cultures.

Diversification

Diversification is the strategy of entering into new markets or creating new products to spread risk and reduce dependence on a single source of income or success.

Command Economy

An economic system wherein the government or central authority makes all decisions regarding the production and distribution of goods and services.

Global South

A term referring to countries primarily located in the Southern Hemisphere, often focusing on regions in Africa, Latin America, Asia, and the Middle East, highlighting developmental and economic disparities.