Day 4 Business Terms
Contribution Margin – The Profit Clue Most Businesses Ignore
Most founders talk about revenue and profit… but ignore what really drives profitability:
Contribution Margin.
What is it?
Contribution Margin = Revenue – Variable C
Wth is CM1, CM2????
CM - Contribution Margin
Contribution margin is the selling price per unit minus the variable cost per unit.
CM1 =
Contribution margin one= selling price- material costs - logistics costs.
CM2=
Contribution margin two= sellin
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