Contribution margin per unit
Contribution margin per unit is selling price minus the variable cost per unit.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Contribution margin per unit. Selling price minus the variable cost per unit.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Contribution margin per unit. The excess of the unit sales price over the variable cost per unit; also called unit contribution margin.