The contribution margin per unit is how much profit each unit contributes after fixed costs are considered.

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The contribution margin per unit measures how much each unit sold contributes towards covering fixed costs and generating profit, but it does not include fixed costs in its calculation; it's calculated by subtracting variable costs per unit from the selling price per unit. Fixed costs are considered separately when calculating the overall profitability of a product or business.

The Contribution Margin Per Unit Is How Much Profit Each