Categories: Formula

Contribution Margin Per Unit Formula: Understanding Forex Trading

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The contribution margin per unit formula is a useful tool for businesses to help determine how much profit each unit of a product or service generates. The formula is calculated by subtracting the variable expenses associated with the sale of a product or service from the revenue earned from the sale of each unit. This provides businesses with an insight into the actual contribution generated by every unit sold, aiding in strategic business decisions such as setting pricing or determining the most profitable products.

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