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-   -   Contribution margin is the amount remaining after what? (https://www.askmehelpdesk.com/showthread.php?t=421525)

  • Dec 2, 2009, 03:17 PM
    calijessica209
    Contribution margin is the amount remaining after what?
    The contribution margin is the amount remaining after what?
  • Dec 2, 2009, 08:24 PM
    ROLCAM

    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.
  • Dec 3, 2009, 05:36 AM
    rehmanvohra

    I think the question is regarding contribution margin and not gross margin.

    Contribution margin:
    Sales
    Less: Variable costs of sales (both purchases and sales)

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