What is profit contribution margin?

[nolosoft]

Can anyone explain what profit contribution margin is and how to calculate it?

[danisara]

Hi,
profit contribution margin is simply the piece of your sales that contributes to your profit. Profit contribution margin is the sales price received minus the variable cost. Profit contribution margin is the excess of sales price over expenses or variable costs.
Cheers.
dani

[smartkpis]

Hi Nolosoft,

Profit margin measures how much profit a company makes for every $1 it generates in revenue. Measures the operational efficiency of a company, indicating the entity's ability to control costs and its pricing policy.

Hope this helps you

Best regard,
smartKPIs.com

---
admin: edited for spam