The contribution margin per unit is the price at which a unit must be sold in order for the company to break even.

The contribution margin per unit is the difference between the price at which a unit is sold and the variable cost per unit. It represents the amount that goes towards covering fixed costs and generating profit. The break-even point is the point at which total revenue equals total costs, including both fixed and variable costs. Therefore, the contribution margin per unit does not necessarily represent the price at which a unit must be sold in order for the company to break even.