Contribution margin CM or dollar contribution per unit is the selling price per unit minus the variable cost per unit. Racquets sell for 4 per unit and have a unit variable cost of 260. Cost Volume Profit Analysis Cost Accounting Analysis Contribution Margin V Unit variable cost variable cost per unit X Number of units. . The contribution from sales helps the business be on track. Costs and sales can be broken down which provide further insight into operations. Unit contribution margin per unit denotes the profit potential of a product or activity from the. Budgeted sales revenue for the next period is 1250000 in the standard mix. Building on the above example suppose that the company sold 1 million units. Budgeted fixed costs are 407000 per period. P Unit sales price. To calculate the variable contribution margin perform the following calculation. If it costs more per unit to acquire raw materials however