What Are the Unit Contribution Margin and the Contribution Margin

question 129

Essay

What are the unit contribution margin and the contribution margin ratio? What do these measures reveal about a company's cost structure?

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Definitions:

Totals Button

A feature commonly found in databases and spreadsheet applications that calculates and displays the sum of selected numeric fields.

HOME Tab

The primary tab in many software applications that contains the most commonly used functions and tools.

Datasheet

A display format that presents data in rows and columns, commonly used in database and spreadsheet applications.

Validation Rule

A criteria or constraint set in a database or application to ensure that only valid data can be entered.