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Variable cost ratio = total variable cost / sales. As long as price and variable cost remain the same, these ratios will remain the same. It does not matter if the company sells 10 units or 1 million units, the percentage of each sale that becomes contribution margin or does to cover variable costs is the same.angout Limited, LLC sells one product priced at $40 per unit. The variable costs (direct materials, direct labor, variable overhead and variable selling) is $25 per unit. Calculate the contribution margin per unit, the contribution margin ratio and the variable cost ratio.
Tips. 1  Long-run marginal costs differ from short-run in that no costs are fixed in the long run. 2  The general formula for calculating short-run marginal cost is: MC= d(TC)/d(Q) where TC is total cost, Q is quantity, and d signifies the change in these values.tep 3. Calculate the change in total cost when producing a given quantity of additional units. Total cost is equal to fixed costs plus variable costs. The change in total cost will be the new total cost after producing any additional units, minus the total cost before producing the units.