contribution margin


The sales price minus the variable cost.

Use contribution margin in a sentence

If you want to find a good way to increase your profits you may want to try tweaking the contribution margin.

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In the latest quarterly report, my company had a high contribution margin which lead to an increase in our stocks.

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The CEO told his sales rep not to include the contribution margin on the sticker of the car but rather in the fine print of the contract.

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contribution contribution to sales ratio (C/S ratio)