Profitability Metrics
These are the stages of profitability every founder should be familiar with (Refer the table below)
In the beginning, Start with Contribution margin (CM)- measure if your revenue covers variable costs.
Next, target transacti
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Anonymous 1
Stealth • 4h
I completely agree with this breakdown! Starting with Contribution Margin (CM) is essential if your basic variable costs aren’t covered, you’re just bleeding money from day one
0 replies1 like
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Ronak Patel
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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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These are the stages of profitability every founder should be familiar with (Refer the table below)
In the beginning, Start with Contribution margin (CM)- measure if your revenue covers variable costs.
Next, target transacti
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