When it comes to trading in the foreign exchange market, one of the most important calculations you can make to maximize your profits is to understand the concept of contribution margin per unit. This formula can be used to help determine the level of profitability for a company by deducting variable costs from the sales made. In this article, we will discuss the contribution margin per unit formula and how it can be used in the foreign exchange market. The contribution margin per unit formula is: (Selling Price – Variable Costs) / Selling Price.
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