3 1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin Principles of Accounting, Volume 2: Managerial Accounting
The contribution margin ratio is just one of many important financial metrics used for making better informed business decisions. The ratio can help businesses choose a pricing strategy that makes sure sales cover variable costs, with enough left over to contribute to both fixed expenses and profits. It can also be an invaluable tool for […]
