In cost accounting, the amount per unit that contributes to fixed costs after variable costs are deducted is called

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It’s about how much each unit adds to covering fixed costs after variable costs are paid. That per-unit amount is called the contribution per unit (often referred to as the contribution margin per unit). It’s calculated as the selling price per unit minus the variable cost per unit. This contribution goes first toward fixed costs; once those are covered, any remaining contribution helps generate profit. For example, if a unit sells for 100 and the variable cost per unit is 60, the contribution per unit is 40. This concept is distinct from gross margin, which relates to profitability after cost of goods sold but isn’t specifically about covering fixed costs per unit. Overhead refers to fixed costs themselves, and break-even is the sales level where total revenue equals total costs.