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:
To determine the break-even point, divide your fixed costs by the per-unit contribution margin. If you have $4,000 a month in fixed costs, you'd get $4,000 divided by $1.25, or 3,200. You have to produce 3,200 units a month to break even.