The contribution margin per unit is the difference between the selling price and variable cost per unit. It is available to cover fixed costs.
The break-even point is reached when total contribution margin covers the fixed costs.
In the simplified single-product case, prices and unit costs are constant. The price is €80, variable costs are €50 per unit and fixed costs are €18,000.
| Fixed costs | €18,000 |
| Contribution margin per unit | €30 |




