Contribution Per Unit

Contribution Per Unit: The difference between the selling price of an item and its unit variable cost. Contribution per item is found by subtracting the variable costs of making an item from its selling price. 

Contribution Per Unit = Selling Price Per Unit = Unit Variable Costs

Example: Calculate the total contribution made where selling price is £30 and unit variable costs are £20.

£30-£20 = £10

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Contribution Per Unit

Contribution Per Unit: The difference between the selling price of an item and its unit variable cost. Contribution per item is found by subtracting the variable costs of making an item from its selling price. 

Contribution Per Unit = Selling Price Per Unit = Unit Variable Costs

Example: Calculate the total contribution made where selling price is £30 and unit variable costs are £20.

£30-£20 = £10

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