Contribution Margin

Contribution Margin

القصة المصورة الوصف

Storyboard That's Illustrated Guide to Business Terms - The formula for calculating your contribution margin is Total Revenue – Variable Costs. This allows you to calculate exact profit per unit sold.

نص القصة المصورة

  • الانزلاق: 1
  • How do we calculate our profits?
  • Take how much we're making and subtract any variable costs!
  • Quarterly reports
  • CONTRIBUTION MARGINThe formula for calculating your contribution margin is Total Revenue – Variable Costs. This allows you to calculate exact profit per unit sold.