Contribution Margin Income Statement A contribution margin income statement organizes costs by behavior (variable or fixed), rather than by function (operating, selling, or administrative). The contribution margin is the difference between sales and variable expenses v Byron Manufacturing has one product that sells for $24.00 per unit. The company estimates fixed costs at $6,000, direct materials at $4.00 per unit, direct labor at $5.00 per unit, and variable overhead costs at $3.00 per unit. Fill in the contribution margin income statement when 730 units are sold: Byron Manufacturing Contribution Margin Income Statement Sales 17,520 Less: Variable costs v 8,760 Contribution margin B,760 Less: Fixed costs v 6,000 Operating income 2,760 Calculate Byron Manufacturing's per unit contribution margin : $ 12 The contribution margin ratio is 50% v Calculating the Break-even Point: The break-even point in sales dollars is $ 12,000 which is a break-even point in units of units