MATCHING SECTION Variable cost per unit Contribution margin Total variable costs Activity rate Remains constant in total within the relevant range Used to calculate target net income in sales dollars Estimated costs Remains constant as sales volume increases/decreases Used to allocate costs to products using ABC method Used to calculate target net income in units Sales- variable costs Contribution margin- fixed costs Direct labor hours Allocation base Frequency of activity Total fixed costs Net income Contribution margin ratio Contribution margin per unit