Economics

Unit contribution margin ratio

Unit contribution margin ratio is a financial measure of value, return, cost, or cash flow.

FreeOnlineNo sign-up
K = CMᵤ / P

What it means

Unit contribution margin ratio is a financial measure of value, return, cost, or cash flow.

How it works and where it is used

Use this calculation for finding break-even points, safety margins, and sales volume required for target profit.