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Unit Contribution Margin
The difference between the selling price per unit and the variable cost per unit, showing how much each unit contributes to covering fixed costs and generating profit.
Fixed Costs
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.
Contribution Margin Ratio
A measurement that shows how much of a company's revenue is available to cover fixed expenses and generate profit after variable costs are covered.
Fixed Costs
Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance premiums.
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