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A sale has to help pay the fixed costs
Contribution per unit is selling price minus variable cost per unit.
The idea
That remainder contributes toward fixed costs and then profit. It is not automatically the final profit on the sale.
An example
A €10 item with €6 variable cost contributes €4 before fixed costs are covered.
Put it into practice
Calculate what one extra sale actually contributes.
Further reading: OpenStax · Managerial Accounting ↗
Test yourself: What is the contribution of a €10 sale with €6 variable cost?
€4
Subtract variable cost from the selling price: 10 − 6 = 4.
Explanation and illustrative examples by One Card Wiser. Source linked for further reading.
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