calijessica209
Dec 2, 2009, 03:17 PM
The contribution margin is the amount remaining after what?
ROLCAM
Dec 2, 2009, 08:24 PM
1) The Sales Figure at selling prices.
2) The Cost of Goods at purchasing prices.
Number 1 minus number 2 above
Gives you the GROSS MARGIN
Known as gross profit.
rehmanvohra
Dec 3, 2009, 05:36 AM
I think the question is regarding contribution margin and not gross margin.
Contribution margin:
Sales
Less: Variable costs of sales (both purchases and sales)