# Maximization of Contribution Margin

Contribution margin-based pricing is a pricing approach which maximizes the profit resulting from an individual product, based on the difference between the product’s price and variable costs, on one’s assumptions regarding the relationship between the product’s price and the number of units that can be sold at that price.

## Linear Programming and Maximization of Contribution Margin – Simplex Method

Linear Programming and Maximization of Contribution Margin – Simplex Method: Learning Objective of the Article: Define and explain linear programming simplex method. How a profit maximization problem is solved using linear programming simplex method. Definition and Explanation of Simplex Method: Simplex method is considered

## Linear Programming and Maximization of Contribution Margin – Graphical Method

Linear Programming and Maximization of Contribution Margin – Graphical Method: Learning Objective of the Article: Define and explain linear programming graphical method. How profit maximization problem is solved using linear programming graphical method. The contribution margin is one measure of whether management is making