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    calijessica209's Avatar
    calijessica209 Posts: 1, Reputation: 1
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    #1

    Dec 2, 2009, 03:17 PM
    Contribution margin is the amount remaining after what?
    The contribution margin is the amount remaining after what?
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    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's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #3

    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)
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