Gross Margin vs. Contribution Margin: What’s the Difference?
https://www.online-accounting.net:443/gross-margin-vs-contribution-margin-what-s-the/
WEBJun 22, 2020 · Contribution margin per unit formula would be = (Selling price per unit – Variable cost per unit) = ($6 – $2) = $4 per unit. Contribution would be = ($4 * 50,000) = $200,000. Contribution ratio would be = Contribution / Sales = $200,000 / $300,000 = 2/3 = 66.67%. This means that the contribution margin is always higher than the gross margin.
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