Contribution margin analysis investigates the residual margin following variable expenses are subtracted from revenues. This analysis is used to compare the amount of cash spun off by various products and services, so that management can determine which ones should be sold and which should be terminated. The total amount of contribution margin generated can also be compared to the total amount of fixed costs to be paid in each period, so that management can see if the current pricing and price structure of the business is likely to generate any profits.Contribution margin is revenues minus all variable expenses. The outcome is then divided by revenues to arrive at a percentage contribution margin. This calculation does not include any apportionment of overhead costs
Opinion: Accounting & Marketing
Opinion: Accounting & Marketing
Research Article: Accounting & Marketing
Research Article: Accounting & Marketing
Research Article: Accounting & Marketing
Research Article: Accounting & Marketing
Research Article: Accounting & Marketing
Research Article: Accounting & Marketing
Research Article: Accounting & Marketing
Research Article: Accounting & Marketing
Research Article: Accounting & Marketing
Research Article: Accounting & Marketing
Posters & Accepted Abstracts: Business and Economics Journal
Posters & Accepted Abstracts: Business and Economics Journal
Accounting & Marketing received 487 citations as per Google Scholar report
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