3 1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin Principles of Accounting, Volume 2: Managerial Accounting
In the Dobson Books Company example, the contribution margin for selling $200,000 worth of books was $120,000. The following are the steps to calculate the contribution margin for your business. And to understand each of the steps, let’s consider the above-mentioned Dobson example. Variable Costs depend on the...