In cost-volume-profit analysis, a form of management accounting, contribution margin is the marginal profit per unit sale. It is a useful quantity in carrying out various calculations, and can be used as a measure of operating leverage. Typically, high contribution margins are prevalent in the labour-intensive tertiary sector while low contribution margins are prevalent in the capital-intensive industrial sector.
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“Then he rang the bell and ordered a ham sandwich. When the maid placed the plate on the table, he deliberately looked away but as soon as the door had shut, he grabbed the sandwich with both hands, immediately soiled his fingers and chin with the hanging margin of fat and, grunting greedily, began to much.”
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