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Sales Price per unit, contribution margin ratio

Asked Apr 30, 2008, 04:34 PM — 1 Answer
Having a problem with finding a sales price per unit.

1 Answer
morgaine300's Avatar
morgaine300 Posts: 6,564, Reputation: 1474
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May 3, 2008, 09:06 PM
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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