Question: how to calculate contribution margin percentage?
Answer: Contribution margin per unit formula would be = (Selling price per unit – Variable cost per unit) = ($6 – $2) = $4 per unit. Contribution would be = ($4 * 50,000) = $200,000. Contribution ratio would be = Contribution / Sales = $200,000 / $300,000 = 2/3 = 66.67%.