2. A contribution margin is a measure of an item’s profitability, not simply its food cost. True False

Contribution margin is also known as .a.net profit.b.gross profit.c.net loss.d.marginal income .

The contribution margin per unit equals:Group of answer choicesselling price - fixed costs per unitselling price - variable costs per unitfixed cost - contribution margin ratioselling price - costs of good sold

In cost-volume-profit analysis, the contribution margin per unit is:Multiple ChoiceThe same as the contribution margin ratio.Selling price per unit less total cost per unit.Selling price per unit less variable costs per unit.Selling price per unit less fixed costs per unit.Selling price per unit less cost of goods sold per unit.

Contribution margin is calculated as:Question 4Select one:a.sales minus cost of goods soldb.sales minus total variable costsc.sales minus total variable manufacturing costsd.sales minus total variable manufacturing costs and total fixed manufacturing costs

The contribution margin ratio:Multiple ChoiceIs the percent of each sales dollar that remains after deducting the unit variable cost.Is the percent of each sales dollar that remains after deducting the unit fixed cost.Is the percent of each sales dollar that remains to cover the variable and fixed costs.Cannot be used in conjunction with other analytical tools.Is the same as the contribution margin per unit.