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Ronak Patel

Stealth • 2m

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= selling price - material cost - logistics cost - AD spend on performance marketing. After deducting the fixed costs from CM2 the amount remaining is called operating profits or EBITDA (eARNING bEFORE iNTEREST, tAX, dEPRECIATION AND aMORTIZATION)

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