Contribution Margin Calculator

Money Available for Fixed Costs

Contribution margin shows how much each sale contributes after variable costs are covered.

Formula: contribution per unit = price - variable cost; ratio = contribution / price x 100.

Understanding Contribution Margin

1. What This Calculator Measures

Contribution margin shows how much each sale contributes toward fixed costs and profit after variable costs.

2. How the Calculation Works

The calculator subtracts variable cost per unit from selling price, then compares that contribution with the selling price.

3. Formula or Rule Used

contribution margin = selling price - variable cost.

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