summarize The last method used is The contribution margin ratio method calculates the required sales in terms of sales dollars instead of units. This approach uses the same formula as the contribution margin method, but it replaces the contribution margin per unit in the denominator with the contribution margin ratio. For example, we have the unit contribution margin is $500 and the net sales revenue per unit is $750 in order to figure out the contribution margin ratio you will take $500 divided by $750 which equals 67%. To determine the required sales in dollars, add the fixed costs of $20,000 to the target profit (which is $0 in this case), and then divide by the contribution margin ratio of 67%, which equals $29,850.75