Gross Margin Formula Example 2. This amount is then used to cover the fixed costs. Unit Contribution Margin How To Calculate Unit Contribution Margin Sales price per unit. . Contribution Margin Net Sales Revenue Variable Costs. The following part of the above formula is for your contribution margin ratio. Unit contribution margin per unit denotes the profit potential of a product or activity from the. Accordingly the contribution margin per unit formula is calculated by deducting the per unit variable cost of your product from its per unit selling price. Budgeted sales revenue for the next period is 1250000 in the standard mix. The variable cost per unit is 2 per unit. Once the breakeven point in units has been calculated the breakeven point in sales dollars may be calculated by multiplying the number of breakeven units by the selling price per unit. This concept is one of the key building blocks of break-...