Margin after variable costs
Measure revenue wey remain after variable costs don comot.
Your numbers
Contribution from each unit
Business ratio from inputs for the same consistent period. Accounting definitions and industry comparisons fit differ.
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Formula
Use C = P−V, M = C/P and T = QC. P na unit price, V na unit variable cost, and Q na units sold. C na contribution per unit, M na contribution fraction, and T na total contribution.
Measure revenue wey remain after variable costs don comot.
Example wey show the calculation
- Price for each unit
- 20
- Variable cost for each unit
- 12
- Units
- 1000
- Contribution from each unit
- 8
- Di contribution ratio
- 40 %
- All di contribution together
- 8,000
Where e fit work and limits
Business ratio from inputs for the same consistent period. Accounting definitions and industry comparisons fit differ.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: 2e0c2bafddcf · Example don get check: