What is the abbreviation for contribution margin?
Looking for the shorthand of contribution margin? This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: contribution margin.
What does contribution margin mean?
- Contribution margin
- Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis. In cost-volume-profit analysis, a form of management accounting, contribution margin—the marginal profit per unit sale—is a useful quantity in carrying out various calculations, and can be used as a measure of operating leverage. Typically, low contribution margins are prevalent in the labor-intensive service sector while high contribution margins are prevalent in the capital-intensive industrial sector.
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"contribution margin." Abbreviations.com. STANDS4 LLC, 2023. Web. 9 Feb. 2023. <https://www.abbreviations.com/contribution%20margin>.