The difference between the unit sales price and the variable cost per unit is called:

A) Operating leverage.
B) The contribution margin.
C) The gross profit.
D) The net profit.
E) The marginal revenue.

Contribution Margin

The amount by which a product's sales price exceeds its total variable costs, indicating how much contribution the product makes towards fixed costs and profits.

Variable Cost

Costs that vary directly with the level of output or production activity, such as raw materials or hourly labor.