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Dictionary by pitch.dog
Margins, break-even & unit economics · Core

Unit contribution

Also called: contribution per unit

ELI5

Revenue per unit minus specified variable costs per unit.

Used in conversation

“The number is useful only if everyone calculates unit contribution the same way.”

Pitch context

You will see “Unit contribution” in financial models, budgets, board packs and investor materials when the discussion reaches margins, break-even & unit economics.

Why it matters: In margins, break-even & unit economics, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 4

Direct term-level sources and supporting source families.