Contribution Margin: What Is It and How To Calculate It
Buying items such as machinery is a typical example of a fixed cost, specifically a one-time fixed cost. Regardless of how much it is used and how many units are sold, its cost remains the same. However, these fixed costs become a smaller percentage of each unit’s cost as the number of units sold increases. The Contribution Margin is the …
Contribution Margin: What Is It and How To Calculate It Read More »