The Contribution Margin Per Unit Is Calculated as the Difference

question 71

Multiple Choice

The contribution margin per unit is calculated as the difference between

• A) sales revenue per unit and fixed cost per unit.
• B) sales revenue per unit and variable cost per unit.
• C) sales revenue per unit and product cost per unit.
• D) fixed cost per unit and variable cost per unit.

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Definitions:

Partial Equity Method

A method of accounting for an investment, where the investor recognizes its share of the investee's profits but not its losses to the extent of the investment's carrying amount.

Investment Account

An account held at a financial institution that contains securities, cash, and other assets held for investment purposes.

Investment Accounting Method

A set of principles for recording investments on the financial statements, depending on the level of control or influence over the invested entity.

Consolidated Figures

Financial data that combines information from separate entities into a single set of statements, used for overall analysis.