Sales promotions can have a direct and significant impact on a company's contribution margin. When sales promotions are offered to customers without any change in cost basis, contribution margin per ...

The concept of a contribution margin comes from the need for business managers to understand how profitable their businesses have become. For most managers, this is as simple as looking at something ...

Contribution margin is used to help measure product profitability. It helps business owners understand how sales, variable costs and fixed costs all influence operating profit. The larger the ...