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Variable cost ratio = total variable cost / sales. As long as price and variable cost remain the same, these ratios will remain the same. It does not matter if the company sells 10 units or 1 million units, the percentage of each sale that becomes contribution margin or does to cover variable costs is the same.angout Limited, LLC sells one product priced at $40 per unit. The variable costs (direct materials, direct labor, variable overhead and variable selling) is $25 per unit. Calculate the contribution margin per unit, the contribution margin ratio and the variable cost ratio.
Then you plot a variable cost line from this point, which will, in effect, be the total costs line. This is because the fixed cost added to the variable cost gives the total cost. To calculate the variable cost, you multiply variable cost per unit x number of units.In this example, you can assume that the variable cost per unit is Â£2 and there are 2,000 units = Â£4,000. Graph showing the breakeven point of a business. Once you have done this you are ready to plot the total revenue line.hen you plot a variable cost line from this point, which will, in effect, be the total costs line. This is because the fixed cost added to the variable cost gives the total cost. To calculate the variable cost, you multiply variable cost per unit x number of units.