Example of Contribution Margin. Suppose that a company is analyzing its revenues and expenses. The company has sales of $1,000,000 and variable costs of $400,000. The contribution margin for this example would be the difference of $1,000,000 and $400,000, which is $600,000.The $600,000 is the amount left over to pay fixed costs.he company has sales of $1,000,000 and variable costs of $400,000. The contribution margin for this example would be the difference of $1,000,000 and $400,000, which is $600,000. The $600,000 is the amount left over to pay fixed costs.