generatedcontribution margin计算公式
Contribution margin is calculated using the following formula:
Contribution Margin = Sales Revenue - Variable Costs
where:
- Sales Revenue is the total revenue generated from the sale of products or services.
- Variable Costs are the costs that vary directly with the level of production or sales, such as direct labor, direct materials, and variable overhead costs.
The contribution margin represents the amount of revenue available to cover fixed costs and contribute to the company's profit. By deducting variable costs from sales revenue, the contribution margin shows the amount of money available to cover fixed costs and generate profit.
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