Investopedia Video: Contribution Margin
- Title:
- Investopedia Video: Contribution Margin
- Description:
-
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Contribution margin is the difference between sales revenue and variable cost. It allows a company to determine the profitability of individual products by measuring how sales affect profits. In its ratio form, it is calculated as Contribution Margin ÷ Sales Revenue.
While revenue from a company's product is how much money the company makes from selling that item, a product's variable costs include those expenses that vary depending on the company's production volume.
- Video Language:
- English
- Duration:
- 02:08
Alexandre Clemente edited English subtitles for Investopedia Video: Contribution Margin | ||
Alexandre Clemente edited English subtitles for Investopedia Video: Contribution Margin | ||
Alexandre Clemente edited English subtitles for Investopedia Video: Contribution Margin | ||
Alexandre Clemente edited English subtitles for Investopedia Video: Contribution Margin | ||
Alexandre Clemente edited English subtitles for Investopedia Video: Contribution Margin | ||
Alexandre Clemente edited English subtitles for Investopedia Video: Contribution Margin | ||
Alexandre Clemente edited English subtitles for Investopedia Video: Contribution Margin | ||
Alexandre Clemente edited English subtitles for Investopedia Video: Contribution Margin |