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:
We can compute the break-even contribution margin (BE--earning the target 15% on the investment) such that the project's net present value is zero for this project as follows: 0 = {[(BE x 150,000)-2,000,000] x present value annuity factor @15% for 4 years} - 10,000,000 - (5,000,000 x present value factor @ 15% in 4 years) Solving this equation within the indicated factor implies that BE = $43.