How do you find contribution margin %?

Mathematics

1 answer:

nataly862011 [7]3 years ago

3 0

Answer:

Contribution margin = Revenue − Variable costs

Step-by-Step Explanation

For example, if the price of your product is $20 and the unit variable cost is $4, then the unit contribution margin is $16.

The first step in doing the calculation is to take a traditional income statement and recategorize all costs as fixed or variable. This is not as straightforward as it sounds, because it’s not always clear which costs fall into each category.

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