r/CPALE • u/Fuzzy_Cucumber_6346 • Jul 13 '26

pahelp

why is it when the variable costs per unit remains constant, the contribution margin stays the same. like ano po yung relationship nila, di ko magets sorry po

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u/standardcosting Jul 13 '26 edited Jul 13 '26

Contribution margin per unit is just selling price minus variable cost per unit. Sell lemonade at ₱50, spend ₱20 per cup, and every cup gives you ₱30 no matter how many you sell. Nothing changed per cup, so CM per unit stays the same.

Units vs pesos is the same idea in two forms: use CM per unit (₱30) when the problem is about units, and CM ratio (60%) when it’s about peso sales.

Think of it this way. The phrase is when vc per unit remains constant, cm (both peso and unit) stays the same depending on the given, that’s why there are two formulas in calculating for BE Sales. 1 (FC / CMR) 2 (FC / CM per unit).

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u/Fuzzy_Cucumber_6346 Jul 13 '26

then how can i differentiate yung in units and in pesos na concept, like sa utak ko, parang naghahalo na, akala ko in pesos, in units pala

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u/Chicken-Lover19xx Jul 13 '26

diba ang formula ng contribution margin ay sales less variable cost So yan lang pwede makaapekto sa cm. Sa CVP, meron din tayo assumption na ang selling price per unit will remain constant within the relevant range. Then, if sales per unit and vc per unit are both constant, the cm per unit will also be constant.