Answer:
CM per unit= per unit sales price - variable cost per unit
Explanation:
Contribution margin is value realized or left over which first cover fixed costs first and then is realized as profit. OR
The amount by which a product’s selling price exceeds its total variable cost per unit and can be calculated either in dollars (currency value) or as a percentage.
For example, if a Manufacturer sells its products for $200 and incurs variable costs of $20 per unit. In order to calculate their per unit contribution margin, we use the formula [tex]CM per unit= per unit sales price - variable cost per unit[/tex]
Their CM Per unit would be $180 after subtracting their variable cost.
