Sales Price per unit, contribution margin ratio

Question

Apr 30, 2008, 03:34 PM

JSaw8704

New Member

Join Date: Apr 2008

Posts: 1

Sales Price per unit, contribution margin ratio

Having a problem with finding a sales price per unit.

Answers

May 3, 2008, 08:06 PM	#2

morgaine300

Accounting Expert

Join Date: Feb 2008

Posts: 1,398

Well, it depends a whole heck of a lot on the information you've been given. Not giving us any information to work with makes it a bit difficult to try to help you.

If you have total sales and the number of units sold, it's a simple matter of dividing the sales by the units. That would be no different than if you knew you paid $10 for 4 gallons of milk and wanted to know what you paid per gallon. You divide.

A contribution margin ratio is contribution margin divided by sales revenue.

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