What is contribution margin and how it is calculated?

steadyshot23

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• Mar 18th, 2010

Contribution Margin is simple (Sales-Variable Costs= Contribution Margin)

sathyapidugu

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• Oct 7th, 2008

Contribution means Total Sales-Variable Cost= Contribution Contribution is a combination of Fixed expenses + or - profit meansIf Sales are 10000 and Variable cost is 7000 and Fixed cost is 3200 then contribution margin is -200

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