Question

Which of the following represents the excess of the selling price per unit of a product over the variable cost of obtaining and selling each​ unit?

A. Gross margin
B. Operating income
C. Unit contribution margin
D. Net income

Answer 1

C. Unit contribution margin

Step-by-step explanation:

The contribution margin format, lays a straight and clear picture that when a product is sold how much each single unit sold, contributes in meeting the fixed cost.

The format is:

Selling Price

Less: Variable cost of producing and selling

= Contribution Margin

Less: Fixed Cost

= Operating Income

Now, this clearly shows that our answer is Unit Contribution margin.

When against the entire sale proceedings the unitary sales value and variable cost is presented reflects the Unit contribution margin.