Contribution Margin
Updated: 6/22/2018
Contribution Margin
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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

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