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:
On a cash basis, divide $4,200 by the contribution margin ratio of 43.75 percent to figure your break-even weekly revenue of $9,600. When higher supply costs lower your contribution margin per car to $6, your new BEP equals $4,200 divided by $6, or 700 cars per week.n a cash basis, divide $5,460 by the new contribution margin percentage of 37.5 percent to compute the required weekly revenue of $14,560, a $2,080 increase. Calculating contribution margin percentage and the BEP tells you what you have to do.