Contribution Margin Definition
Contribution Margin Definition:
Contribution margin is the amount remaining from sales revenues after all variable expenses have been deducted.
Contribution Margin = Sales Revenue – Variable Cost
Latest Comments
Contribution margin is the amount remaining from sales revenues after all variable expenses have been deducted.
Contribution Margin = Sales Revenue – Variable Cost
do we need to deduct direct material and direct labor from selling price to calculate contribution margin?