Question
A contribution margin of $35 means that Blank______.
Multiple choice question.
each sale of an additional unit will contribute $35 toward paying fixed costs
the firm generates a net profit of $35 on each unit sold
each additional sale will add $35 to the total revenues
the firm has to generate $35 in sales to reach the accounting break-even point
Multiple choice question.
each sale of an additional unit will contribute $35 toward paying fixed costs
the firm generates a net profit of $35 on each unit sold
each additional sale will add $35 to the total revenues
the firm has to generate $35 in sales to reach the accounting break-even point
Answers
GPT-4o mini
The correct answer is:
**each sale of an additional unit will contribute $35 toward paying fixed costs**
This means that for every additional unit sold, $35 will go towards covering fixed costs after covering the variable costs associated with producing that unit.
**each sale of an additional unit will contribute $35 toward paying fixed costs**
This means that for every additional unit sold, $35 will go towards covering fixed costs after covering the variable costs associated with producing that unit.