If the number of units sold is equal to the number of units produced, then contribution margin will equal gross margin.

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Contribution margin and gross margin are different financial metrics. Contribution margin is calculated by subtracting variable costs from sales revenue, while gross margin subtracts both variable and fixed costs of goods sold (COGS) from sales revenue. If fixed costs are not part of COGS, the two margins will not be equal even if units sold equal units produced.

If the Number of Units Sold Is Equal to the Number