If filing married (joint or separate), enter combined taxable amount for you and your spouse.
The contribution margin is a concept used with breakeven point or in break-even analysis. In words, the contribution margin is the amount of money a company has to cover its fixed costs after it pays all of its variable expenses.ontribution Margin per unit of sales = Sales Revenue per Unit-Variable Expenses per Unit. Contribution Margin-Fixed Costs = Net Operating Profit or Loss. The break-even formula calculates the point at which a company's sales are zero-there is no profit or loss:
Your break-even point in dollars equals your total fixed costs for a particular period divided by your contribution margin ratio. Using the previous example, assume your total annual fixed expenses are $350,000.Your break-even point is $636,364, or $350,000 divided by 55 percent.our break-even point in dollars equals your total fixed costs for a particular period divided by your contribution margin ratio. Using the previous example, assume your total annual fixed expenses are $350,000.