contribution margin
Revenue minus variables
Contribution margin is the revenue remaining after subtracting variable costs—the amount that contributes toward covering fixed costs and generating profit.
The product's contribution margin was too slim to justify continued production.
In business analysis, contribution margin helps determine which products are worth selling and at what volume a company breaks even.
- profitGain exceeding expenditure
- revenueBusiness income total
- costsAmounts required to pay
- variableProne to fluctuation
- fixedRestored or immovable
cost structure · breakeven · pricing · price point · sales · gross · unit · coverage · threshold · profitability · leverage · volume · earnings · spread · cushion · absorption · incremental · direct
- financial analysisnet profit, gross profit, profitability, net income, operating profit
- cost accountingcost analysis, cost center, cost centers, cost control, cost accounting
- Financial Ratiosdebt-to-equity, ROI, ROE, P/E ratio, return on investment
contribution marginvariable cost
Spending tied to output
loss · operating loss · deficit · shortfall
contribution marginnet income
Profit after all deductions
net profit · net margin · gross profit · operating profit · bottom line
contribution marginvariable costs
Expenses changing with output
variable expenses · cost of goods sold · direct costs · fixed costs · overhead
contribution, margin, contribute, contributor, contributing, contributed, contributions, contributory, contributive