How is it calculated?
Unit contribution is the sale price minus variable cost. Divide fixed expenses by that contribution and round up to a whole unit.
Worked example
ILS 10,000 in fixed expenses, an ILS 100 unit price and ILS 60 variable cost require 250 units, producing ILS 25,000 revenue.
Common questions
What counts as variable cost?
A cost incurred for each unit sold, such as materials, packaging or per-unit fees. Expenses such as rent belong in fixed costs.