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Contribution margin

Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis.

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Overview

Purpose

Contribution

Examples

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Map overview Semantic statistics

Contribution margin

Nodes28
Edges27
Triples21
Avg. degree1.93
Density0.071429
Components1

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Contribution margin

Top relations

related to Contribution · 7
Contribution margin → Contribution, Price, The Contribution Margin Ratio, The Unit Contribution Margin, Total Revenue, Unit Revenue, Unit Variable Cost
related to Examples · 6
Contribution margin → Beta's, Contribution, Here's, Perhaps, The Beta Company's, This
related to Contribution margin as a measure of efficiency in the operating room · 4
Contribution margin → OR, The, These, Variable
is a · 2
Contribution margin → amount each unit sale adds to profit, excellent tool for managers to help determine whether to keep or drop certain aspects of the business
related to Purpose · 2
Contribution margin → Given, In Cost-Volume-Profit Analysis

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Important terminology

contribution margin costs fixed variable analysis profit income one per unit line cost sales revenue total operating product minus cost-volume-profit

Entity relationships Subject–Predicate–Object triples

SubjectPredicateObjectConfidenceSrc
Contribution marginis aexcellent tool for managers to help determine whether to keep or drop certain aspects of the business0.90text
Contribution marginis aamount each unit sale adds to profit0.90text
Contribution marginrelated to ContributionThe Unit Contribution Margin0.60section
Contribution marginrelated to ContributionUnit Revenue0.60section
Contribution marginrelated to ContributionPrice0.60section
Contribution marginrelated to ContributionUnit Variable Cost0.60section
Contribution marginrelated to ContributionThe Contribution Margin Ratio0.60section
Contribution marginrelated to ContributionContribution0.60section
Contribution marginrelated to ContributionTotal Revenue0.60section
Contribution marginrelated to Contribution margin as a measure of efficiency in the operating roomThe0.60section
Contribution marginrelated to Contribution margin as a measure of efficiency in the operating roomThese0.60section
Contribution marginrelated to Contribution margin as a measure of efficiency in the operating roomOR0.60section

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