What does contribution margin mean?
Definitions for contribution margin
con·tri·bu·tion mar·gin
This dictionary definitions page includes all the possible meanings, example usage and translations of the word contribution margin.
Wikipedia
Contribution margin
Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis. In cost-volume-profit analysis, a form of management accounting, contribution margin—the marginal profit per unit sale—is a useful quantity in carrying out various calculations, and can be used as a measure of operating leverage. Typically, low contribution margins are prevalent in the labor-intensive service sector while high contribution margins are prevalent in the capital-intensive industrial sector.
Numerology
Chaldean Numerology
The numerical value of contribution margin in Chaldean Numerology is: 9
Pythagorean Numerology
The numerical value of contribution margin in Pythagorean Numerology is: 6
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"contribution margin." Definitions.net. STANDS4 LLC, 2024. Web. 27 Apr. 2024. <https://www.definitions.net/definition/contribution+margin>.
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