Chapter 2 –
The Anatomy of Unit Economics

Understanding Unit Economics Will Help You Answer Important Business Questions

In this FREE chapter download, we start to deep dive into some of the components of your unit economics model.  We talk about separating out fixed vs. variable costs and dive into the simple, but important, calculation of contribution margin.  

We will lean into a case study of a fictional marketing company called Blast and look at their income statement at increasing levels of detail to start painting the information we will need for more command around customer level profitability.  

We end the chapter by doing a breakeven analysis for revenue and projects for Blast’s business.


This chapter will provide perspectives on:

  1. The difference between fixed and variable costs
  2. The method of calculating contribution margin
  3. Why the income statement is not that helpful unless it is structured correctly

Out of this chapter, I want you to be thinking about:

  1. How can I get more detail from my accountant into my fixed and variable costs?
  2. Do I have the information I need to calculate my contribution margin?
  3. What’s my breakeven in terms of the number of customers and revenue?

About Stride:

Stride is an outsourced bookkeeping and accounting services firm founded by entrepreneurs to support high growth professional services firms. Our clients include marketing agencies, design firms, consulting firms, and other tech-enabled service providers ranging from $1 million to $10 million in revenue.

We’re committed to helping business owners with a thirst for continuous improvement achieve their highest and best use, whatever that may be.

As entrepreneurs, we know how important trust and confidence is in your back office.  Why?  So you can focus on achieving your highest and best us.  The opportunity for business owners is to work on their business and not in their business.  But if the back-office processes and systems aren’t delivering the information necessary to make better strategic decisions, owners find themselves drawn back into the fray.  At Stride, all of our energy is around team, process, and technology designed to improve cash flow and profit while allowing business owners to chart their future with confidence.

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Becky Brown

Becky Brown

Becky Brown



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