🟧 CONTRIBUTION MARGIN

Question 1

Find the Contribution per Unit (Money Made per Sale Before Fixed Costs)

Answer 1

Contribution per Unit = Selling Price − Variable Cost per Unit

Question 2

Find the Contribution Margin % (Contribution as % of Price)

Answer 2

Contribution Margin % = (Contribution ÷ Selling Price) × 100

Question 3

Find the Total Contribution from All Units Sold

Answer 3

Total Contribution = Contribution per Unit × Units Sold