Which of the following formulas would be best for calculating the total contribution margin?

A) sales revenue - total variable cost
B) $\frac{\text{ unit price - variable cost per unit }}{\text{ unit price }}$
C) price per unit - total cost per unit
D) $\frac{\text{ revenueper product }}{\text{overall revenue }}$

Contribution Margin

The amount by which the sale of a product or service exceeds its production and selling costs, indicating how much contributes to covering fixed costs and generating profit.

Variable Cost

A cost that varies with the level of output or production, such as materials and labor costs.

Sales Revenue

The total amount of money generated from the sale of goods and services before any costs or expenses are subtracted.