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Using Unit Contribution

The analysis of contribution margin in the case study of DVD production involved total variable costs and total revenues. You can also break the information down to a per unit and percent of sales basis. Doing so often gives you a different view of the relationship between your costs and revenues.

Calculating the Unit Contribution Margin

To continue the Discography case study, consider the information summarized in Figure 19.2 from the perspective that's provided in Figure 19.3.


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