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Daily Archives: July 19, 2021

Contribution Margin: Definition, Overview, and How To Calculate

In other words, it measures how much money each additional sale “contributes” to the company’s total profits. Where C is the contribution margin, R is the total revenue, and V represents variable costs. The contribution margin can be stated on a gross or per-unit basis. It represents the incremental money generated for each product/unit sold […]

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