Contribution Margin

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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Famous quotes containing the words contribution and/or margin:

    By what a delicate and far-stretched contribution every island is made! What an enterprise of nature thus to lay the foundations of and to build up the future continent, of golden and silver sands and the ruins of forests, with ant-like industry.
    Henry David Thoreau (1817–1862)

    Everything that explains the world has in fact explained a world that does not exist, a world in which men are at the center of the human enterprise and women are at the margin “helping” them. Such a world does not exist—never has.
    Gerda Lerner (b. 1920)