Examlex
A contribution margin is calculated by subtracting variable expenses from sales, and represents the amount of revenue that contributes to covering the ____ expenses of a company.
Manufacturing Costs
These are expenses directly related to the production of goods, including labor, materials, and overhead.
Selling
The process of promoting and transferring goods or services to a buyer in exchange for money.
Contribution Margin Ratio
The percentage of each dollar of sales that is available to apply to fixed costs and contribute to net income; calculated as unit contribution margin divided by unit selling price.
Unit Contribution Margin
The amount of revenue remaining per unit after deducting variable costs; calculated as unit selling price minus unit variable costs.
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