Discover how to calculate contribution margin, a key profitability metric, by subtracting variable costs from sales revenue.

The average contribution margin is weighted to express each operating department's relative contribution as part of a firm with many departments and each individual department's ability to generate ...

Often used along with other metrics like calculating the gross profit rate, contribution margin analysis is a technique that uses contribution margin, which is a company's sales less variable costs, ...

Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. Contribution margin is used to ...

Kaplan, Robert S. "Contribution Margin Analysis: No Longer Relevant/Strategic Cost Management: The New Paradigm." Journal of Management Accounting Research 2 (Fall 1990): 2–15.

With ever-increasing costs of farm inputs, it becomes more important to determine what inputs will be best to control weeds and other detriments to your crops. Although I am not an agronomist, one ...

Nearly 40% of American hospitals operate with negative margins, and while efforts to optimize revenue have accelerated in recent years, cost containment continues to lag. Healthcare organizations have ...

When you run a company, it’s obviously important to understand how profitable the business is. Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds ...

"Contribution margin" means the sales revenue that remains after variable costs (like the cost of goods, sales commissions and delivery charges) have been deducted. Contribution margin analysis can be ...