ECONOMICS

Detailed explanation-1: -Contribution margin per unit formula would be = (Selling price per unit – Variable cost per unit.

Detailed explanation-2: -Since you have the contribution margin ratio, you must identify the variable cost ratio and use that figure to determine the total sales. To do so, subtract the contribution margin ratio from 100 to determine the variable cost ratio, and then divide the variable cost amount by that percentage.

Detailed explanation-3: -The contribution margin is computed as the selling price per unit, minus the variable cost per unit. Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company.