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    meatcleaves's Avatar
    meatcleaves Posts: 1, Reputation: 1
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    #1

    Jun 22, 2009, 12:43 PM
    Cost of sales included in computation
    Why is cost of sales included in the computation of contribution margin?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    Jul 8, 2009, 07:01 AM

    Contribution margin is sales less variable costs.
    Variable costs include production and selling costs.
    The cost of sales will be broken up in two to show the production cost of sales as well as the total cost of sales.
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