10.2 Entrepreneurship Assessment

A unit of sale is

• what a customer actually buys from you.

• what you buy.

The amount per unit that a product contributes toward the company's profitability before the fixed expenses are subtracted is known as the

• unit of sale

• contribution margin

• EOU

To calculate the contribution margin for a unit, you would

• subtract the variable expense from the selling price.

• subtract the fixed expense from the selling price.

The contribution margin for one unit does not take into consideration

• EOU

• variable expenses

• fixed expenses

In a wholesale business, the cost of goods sold does not include

• materials

• labor

• commissions

In a service business, which of the following does NOT apply?

• COGS

• EOU

• contribution margin

COGS is used when calculating an EOU in what type of business?

• retail

• service

• wholesale

A "typical EOU" would be used in a business that

• sells a variety of products

• sells to retailers

• sells to wholesalers

A retailer that sells sweaters would calculate a unit of sale based on

• each sweater sold to a customer at the regular price

• each sweater sold to a customer at the sale price

The amount of product or service that you use to figure your operations and profit is known as unit of sale.

• true

• false