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contribution margin

   Also found in: Wikipedia 0.10 sec.
Contribution Margin
A cost accounting concept calculated as total revenue from a product or service less the total variable cost.

Notes:
The contribution margin helps you make better decisions about pricing, adding or subtracting from a product line, how to structure sales commissions, among other things.

Contribution margin
The difference between variable revenue and variable cost.
contribution margin
The price at which a firm sells its product less the variable cost of producing the product. A company with a large contribution margin is likely to experience substantial profit increases during an economic upswing.


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Direct Revenue--Direct Expense = Contribution Margin
Show me the money: a guide to profitability in course offerings by Ferrell, Ben / University Business
In one instance, the contribution margin of a mill looked reasonable, and, on average, each ton produced a contribution.
Challenging conventional wisdom: the art of the possible by Daniels, Douglas / Solutions - for People, Processes and Paper
The contribution margin (greater contribution with lesser variable costs--for example, an office visit has a greater contribution margin than an in-office procedure that requires supplies [e.
Percentage of reimbursement per CPT code by Isenberg, Steven F. / Ear, Nose and Throat Journal
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