# Contribution Margin Method

The basic technique to the breakeven measurement is the contribution margin method. Contribution margin (CM) method is the quantity by which sales revenue go beyond variable costs. It can be measured as contribution margin per unit as well as total contribution margin, using the following formulas: Unit CM = Unit Price − Variable Cost per Unit

Break Even Point Analysis-Definition, Explanation Formula and Calculation: Learning Objectives: Define and explain break even point. How is it calculated? What are its advantages, assumptions, and limitations? Definition of Break Even Point Calculation by Equation Method Calculation by Contribution Margin Method Advantages / Benefits

Break Even Formula ,analysis, definition and Calculation: Learning Objectives: Define and explain break even point equation. How break even point is calculated by formula or methods of estimating break even point? What are its advantages, assumptions, characteristics and limitations? What are the three approaches of break