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How do you calculate the contribution margin for a particular product?

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Answer

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Wiki User
05/06/2009

The unit contribution margin is calculated by deducting the unit variable costs from the unit selling price: $12.00 - $8.00 = $4.00

USP - UVC = UCM Selling price per unit 12.00

Variable cost per unit 8.00

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Unit contribution margin 4.00