In addition, medical devices include in vitro diagnostic products, such as general purpose lab equipment, reagents, and test kits, which may include monoclonal antibody technology. Certain electronic radiation emitting products with medical application and claims meet the definition of medical device.
Sales commission is a variable cost because the amount of the account is subject to variation. Think about it: A used car salesman is paid a commission say of $500 for every car he sells for the month of October. If he sells only 2 cars, then the sales commission is $1000, If he sells a whopping 12 cars, then the sales commission is $6000!!
Sales price per unit-Variable cost per unit = Contribution margin per unit. Contribution margin ratio. The amount of cents of every sales dollar available to cover fixed costs and to contribute to profit. (Sales price per unit-Variable cost per unit) / Sales price per unit = Contribution margin ratio.ales revenue-Total variable costs = Contribution margin. Contribution margin per unit. The amount from the sale of each unit that is available to cover fixed costs and to contribute to profit.