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    acampa45's Avatar
    acampa45 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 23, 2011, 07:34 PM
    Sales price per unit formula
    Hello,

    I have to figure sales price per unit given unit variable expenses, total fixed expenses, and contribution margin ratio. Can you please let me know how I figure sales price per formula?

    Thank you for your help!
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
    		  
    #2

    Feb 24, 2011, 06:14 AM
    The contribution margin ratio M is the ratio where P and V denote the unit Price and unit Variable cost, respectively.

    Since you're given M and V, you can derive P from the equation.
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