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Storyboard That's Illustrated Guide to Business Terms - The formula for calculating your contribution margin is Total Revenue – Variable Costs. This allows you to calculate exact profit per unit sold.

- CONTRIBUTION MARGIN The formula for calculating your contribution margin is Total Revenue – Variable Costs. This allows you to calculate exact profit per unit sold.
- How do we calculate our profits?
- Quarterly reports
- Take how much we're making and subtract any variable costs!