Profit is the ultimate goal for any business. Business owners selling goods or services use the unit contribution margin to determine the profit per unit. It is calculated as a percentage or dollar ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Eric's career includes extensive work in ...

For a business that makes products, a contribution margin helps you determine how much you'll need to make and sell to cover all your costs and begin to realize a profit. It's a basic metric used by ...