Contribution profit margin is the portion of the sale of a product that contributes to covering the cash variable costs.

Name: Contribution profit margin is the portion of the sale of a product that contributes to covering the cash variable costs.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Contribution margin is the portion of sales revenue that exceeds total variable costs, and it contributes to covering fixed costs and generating profit, not just the cash variable costs.

Contribution Profit Margin Is the Portion of the Sale of a Product