When allocating scarce resources, the contribution margin will help them focus on those products or services with the highest margin, thereby maximizing profits. The contribution margin may also be expressed as a percentage of sales. When the contribution margin is expressed as a percentage of sales, it is called the contribution margin ratio or profit-volume […]
When allocating scarce resources, the contribution margin will help them focus on those products or services with the highest margin, thereby maximizing profits. The contribution margin may also be expressed as a percentage of sales. When the contribution margin is expressed as a percentage of sales, it is called the contribution margin ratio or profit-volume […]