Revenue per unit minus cost of goods sold equals?

The correct answer is contribution margin, which is a key financial metric used to assess the profitability of individual units sold. Contribution margin is calculated by taking the revenue generated from a product and subtracting the cost of goods sold (COGS). This figure highlights how much money is available to cover fixed costs and contribute to the net profit after all variable costs have been accounted for.

Understanding contribution margin is essential for business decision-making, as it provides insight into how much each unit sold contributes to covering fixed expenses and generating profits. This metric is particularly useful for pricing strategies and assessing the impact of changes in sales volume on overall profitability.

In contrast, the other options represent different profit measures or concepts that involve broader calculations. For example, net profit accounts for all expenses, including fixed costs, taxes, and interest, whereas gross margin only considers revenue minus COGS, without accounting for any additional operating expenses. Operating income takes into account all operating expenses but does not factor in non-operational aspects such as taxes or interest. Thus, contribution margin is specifically focused on the relationship between revenue from sales and direct costs of producing those goods, making it the correct choice in this case.