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:
Breakeven Point = Fixed Costs / Contribution Margin per Unit. Contribution Margin = Unit Selling Price - Variable Costs. If you want to make $50,000 profit, then $50,000 is your Target Profit. You can add that to the formula like so: Sales Goal = Fixed Costs + Target Profit / Contribution Margin per Unit.