profit per unit is equal to which of the following calculations? select the best option. difference between…

profit per unit is equal to which of the following calculations? select the best option. difference between the selling price and the fixed costs per unit difference between the selling price and the variable costs per unit fixed costs divided by the selling price fixed costs divided by the variable costs if you need to review this content, it can be found in the determining the break - even point module of th

profit per unit is equal to which of the following calculations? select the best option. difference between the selling price and the fixed costs per unit difference between the selling price and the variable costs per unit fixed costs divided by the selling price fixed costs divided by the variable costs if you need to review this content, it can be found in the determining the break - even point module of th

Answer

Explanation:

Step1: Recall profit formula

Profit = Total Revenue - Total Cost. Per - unit profit is calculated by dividing the total profit by the number of units. Also, Total Revenue per unit is the selling price per unit, and Total Cost per unit is the sum of fixed - cost per unit and variable - cost per unit. So, profit per unit = Selling price per unit - (Fixed cost per unit+Variable cost per unit). In a more common way, when we consider contribution margin (which is related to profit per unit in short - term analysis), profit per unit = Selling price per unit - Variable cost per unit.

Answer:

Difference between the selling price and the variable costs per unit