How to calculate Contribution margin per unit
The Contribution margin per unit formula, with plain worked examples you can check yourself.
Contribution margin per unit = P − V
Worked examples
P = 80 · V = 32Contribution margin per unit = 48
P = 60 · V = 24Contribution margin per unit = 36
P = 100 · V = 60Contribution margin per unit = 40
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- Compare the answer with last period or with a competitor to see if it is good or bad.
Practice Contribution margin per unit with real numbers
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