Contribution margin per unit is a useful tool for calculating contribution margin and operating income.

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Contribution margin per unit is a key measure used to determine the profitability of a product or service. It is calculated by deducting variable costs from revenue for each unit sold. By using this measure, businesses can determine the amount of revenue generated from each unit sold that goes towards covering fixed costs and contributing to operating income. Therefore, contribution margin per unit is an important tool for calculating contribution margin and operating income.

Contribution Margin Per Unit Is a Useful Tool for Calculating