in cost - volume - profit analysis, the contribution margin per unit is: multiple choice selling price per…

in cost - volume - profit analysis, the contribution margin per unit is: multiple choice selling price per unit less cost of goods sold per unit. selling price per unit less fixed costs per unit. selling price per unit less variable costs per unit. selling price per unit less total cost per unit. the same as the contribution margin ratio.

in cost - volume - profit analysis, the contribution margin per unit is: multiple choice selling price per unit less cost of goods sold per unit. selling price per unit less fixed costs per unit. selling price per unit less variable costs per unit. selling price per unit less total cost per unit. the same as the contribution margin ratio.

Answer

Brief Explanations:

In cost - volume - profit analysis, the contribution margin per unit is calculated as the selling price per unit minus the variable costs per unit. The cost of goods sold per unit may include both fixed and variable costs (in a traditional costing system), so subtracting it from the selling price is incorrect. Fixed costs per unit change with the level of production, and subtracting them from the selling price per unit is not the definition of contribution margin per unit. Total cost per unit (fixed + variable) subtracted from the selling price per unit gives profit per unit, not contribution margin per unit. The contribution margin ratio is contribution margin per unit divided by selling price per unit, so they are not the same.

Answer:

Selling price per unit less variable costs per unit.