1

________ should be subtracted from the sales price per unit to compute the unit contribution margin.

	All variable costs
	Only variable inventoriable product costs
	Only variable period costs
	All fixed costs

Question

2

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?

	Gross margin
	Operating income
	Net income
	Unit contribution margin

Question

3

Electric Jet Skis operates a jet ski rental business. Assume the jet skis rent for $55 per 6 hours. The variable costs are $33 per six-hour rental, and its fixed costs are $80,000 each month. What is the contribution margin ratio?

	40%
	60%
	250%
	22%

Question

4

Total contribution margin less total fixed expenses equals

	contribution margin ratio.
	operating income.
	gross profit.
	sales revenue.

Question

5

Managers can quickly forecast the total contribution margin by dividing the

	projected sales units by the variable cost ratio.
	projected sales units by the contribution margin ratio.
	projected sales revenue by the unit contribution margin.
	projected sales revenue by the contribution margin ratio.