Insert Draw Design Layout References Teli Times New... v 12 Aav Do BI U v ab X X - Aver Ar Paragrapl Chapter 5: Cost-Volume-Profit Relationships Contribution Margin: The amount of sales that are left to cover fixed costs and profit. Sales-TVC Break Even Total Sales = Total Costs Ex. Price VC/Eraser Rent = $5 - $3 = $200/month Contribution format tells us that How much each unit sold contributes towards covering fixed costs and profit Two ways to calculate Price - VC/unit CM/unit or CM Units Sales-TVC Ex. How many additional erasers do I have to sell to increase income by $300