ocr: Unit Contribution/Con/Contribution Margin Per Unit Contribution margin - Selling price : - Variable costs per unit Asa company goes about its business of: manutacturing products or providing services, the more it sells, the more its aggregate variable costs rise and the more its sales revenue rises. The difference between the variable costs and the sales revenue is called the unit contribution or contribution margin. Beyond the breakeven point (i.e. once all the fixed costs have been covered) any contribution becomes profit. Above breakeven point, contribution could equally well be described a ...
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