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You have a new e-book reader and you are expecting to be away on a long hike with it. How many hours of reading can you get from it before needing to recharge it?
Contribution Margin
Contribution margin is a financial metric that represents the amount of revenue from sales that exceeds variable costs, indicating the portion of sales revenue that contributes to covering fixed costs and generating profit.
Machine Hour
A unit of measurement for the operational use of a machine, implying the total time a machine is functional and available for production.
Markup Percentage
The proportion of the cost of goods that is added to cover the overhead and profit, which sets the selling price.
Variable Cost
Costs that change in proportion to the level of production or sales activity, such as raw materials and direct labor.
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