Difference between variable cost per unit and selling price can be classified as

A. contribution margin per unit

B. variable margin per unit

C. selling margin per unit

D. sale per unit

Answer: Option A

Solution(By Examveda Team)

Difference between variable cost per unit and selling price can be classified as contribution margin per unit. Contribution margin per unit is the net amount that each additional unit sold contributes towards a company’s fixed costs and profit.