Smith Company Is Conducting a Sales Mix Analysis

Multiple Choice

Smith Company is conducting a sales mix analysis.The first step in this analysis involves which of the following formulas?

A) Contribution Margin per Unit = Selling Price per Unit - Variable Costs per Unit
B) Contribution Margin per Unit = Selling Price per Unit - Fixed Costs per Unit
C) Contribution Margin per Unit of Constrained Resources = Contribution Margin per Unit ¸ Quantity of the Constrained Resource Required per Unit
D) Contribution Margin per Unit of Constrained Resources = Contribution Margin per Unit ´ Quantity of the Constrained Resource Required per Unit