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 […]
These numbers reflect the previous tax year, the most recent for which figures were available from the Oregon Department of Revenue. The caps have succeeded in keeping property taxes relatively predictable and far lower than if they rose in sync with their home value — the price homeowners could fetch for their house. Most people […]
When calculating depreciation, the estimated residual value is not depreciation because the business can expect to receive this amount from selling off the asset. Accountants often say that the purpose of depreciation is to match the cost of the truck with the revenues that are being earned by using the truck. Others say that the […]