Contribution Margin
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Contribution Margin: Importance and Examples
The formula for calculating your contribution margin is Total Revenue – Variable Costs. Learn more about this and other business terms with our Picture Encyclopedia!
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Storyboard Description
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.
Storyboard Text
- Slide: 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.