Respuesta :
Contribution margin per unit =
Contribution margin per unit =(Sales - Variable Expenses) / 1,000
= (22,400 - 12,000) / 1,000
= 9,600 / 1,000 = 9.60
What is Contribution margin ?
The contribution margin displays the total amount of revenue available after variable costs to pay for fixed expenditures and turn a profit for the business, according to Knight. You might conceive of this as the portion of sales that helps to cover fixed costs.
- Understanding how sales, varying costs, and fixed costs all affect operating profit is made easier with the help of contribution margin. It provides a means for business owners to gauge how different sales volumes may impact profitability. It can be computed at the individual or overall level and expressed as a dollar amount or a percentage.
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