Question

The profit margin on an item the company sells can best be defined as:

Answer 1

Answer:

B) Price of the unit minus cost of goods sold per unit.

Explanation:

A)

Costs involving monetary payments are explicit costs. Labor costs and total debt payments, both are explicit costs.

B)

The difference between revenue earned and cost of goods sold is our profit margin. Price of the unit is revenue earned and deducting cost of goods sold per unit from it will give us profit margin of an item.

C)

The unit price of an item is called the price of the unit, also called sales price. It could in Kilogram, Liter, etc. The price of the unit is considered part of the profit margin but not actually comprise profit margin itself.  

D)

The unit cost of an item is called the cost of goods sold per unit. The unit could be in Kilogram, Liter, etc. The cost of goods sold is usually deducted from the price of the unit to derive to the profit margin. Hence a part of profit margin but not actually a profit margin itself.

Answer 2

Answer:

B)price of the unit minus cost of goods sold per unit

Explanation:

Profit margin is the amount by which revenue from sales exceeds costs in a business. That is the difference between Price per unit and Cost of goods sold per unit.