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  Encyclopedia of Keywords > Tourism > Resorts > Business > Management > Contribution Margin   Michael Charnine

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  1. Contribution margin is a non-GAAP measure used by the Company to evaluate operating results.
  2. Contribution margin is a quick way to figure how much fixed costs each unit can carry. (Web site)
  3. Contribution margin is a crucial key figure in your financial management. (Web site)
  4. Contribution margin is a management accounting concept. (Web site)
  5. Contribution margin is the difference between total revenue and total variable cost.


  1. Hence, contribution margin is a more useful concept than gross margin in CVP analysis.
  2. This amount is also called the contribution margin or gross profit. (Web site)


  1. Contribution margin does not take into account substantial costs of doing business, such as unallocated corporate overhead costs, income tax and interest. (Web site)
  2. For the fourth quarter, total contribution margin improved to $5.6 million, compared to $5.0 million for the same period in the prior year. (Web site)
  3. Contribution margin for structural products for the third quarter of 2007 was 18.3%, compared to 3.3% for the same period last year.
  4. For the fourth quarter, Middleware and Integrated Technologies contribution margin decreased by $1.2 million to $7.4 million. (Web site)

Variable Costs

  1. Contribution margin is sales revenue less variable costs. (Web site)
  2. To calculate contribution margin you subtract variable costs from the price. (Web site)
  3. To calculate the break-even point you must know your fixed costs, variable costs and unit contribution margin.


  1. Sales (from above) $4,500,000 Variable costs ($10 per unit - 180,000 units) 1,800,000 Contribution margin $2,700,000 2b.
  2. Your company's contribution margin is simply the percentage of each sales dollar that remains after the variable costs are subtracted.
  3. You can also calculate contribution margin as a percentage, then it is called contribution ratio. (Web site)
  4. Moreover there is the contribution margin percentage which is contribution margin per unit divided by the selling price.


  1. This improvement of 668% is a direct result of increased licensing activities and an improvement in the contribution margin for structural products.
  2. Each contribution margin is a result of only direct expenses in each profit center.


  1. Most of the time the contribution margin on FMCG are low and cannot be dropped from the list of the company which produces them.
  2. Now 10% contribution margin is tempting for ABC to continue with the shampoo brand.
  3. Lets further assume that the contribution margin are 30% toothpaste , 25% soft drink and 10% shampoo.


  1. Contribution margin (from above) $ 900,000 Fixed costs 800,000 Operating income $ 100,000 2a.
  2. Contribution margin for the Applications Segment improved by $0.5 million to a loss of $0.8 million due to a decrease in operating expenses. (Web site)


  1. For 2005, total contribution margin from our operating segments improved to $19.6 million, compared to $15.0 million in 2004. (Web site)
  2. In simplest terms, the contribution margin is total revenue minus total variable cost.


  1. So only looking at the contribution margin we can---t directly jump to the conclusion whether the product is profitable or not.
  2. But now we have to consider the weighted contribution margin of these two products as they both are using some of the common resources.

Contribution Margin

  1. Management believes that segment contribution margin is a helpful measure in evaluating operational performance for our company. (Web site)
  2. A company's contribution margin can be expressed as the percentage of each sale that remains after the variable costs are subtracted. (Web site)
  3. The above example generates a relatively modest contribution margin. (Web site)
  4. Explain how Contribution Margin is an indicator of profit while Food Cost percentage is a measure of control. (Web site)
  5. Small businesses may use this contribution margin pricing strategically to acquire new customers or establish new markets. (Web site)


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  Short phrases about "Contribution Margin"
  Originally created: November 27, 2007.
  Links checked: March 17, 2013.
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