Contribution Margin Calculator

Answers the Question

Does it make sense to produce more?

Calculator for Contribution Margin


What Is the Contribution Margin?

The contribution margin measures the financial benefit of increased production.

All things being equal, the higher the value of the contribution margin, the more it makes sense to produce additional items. This, of course, is only true as long as the contribution margin remains greater than zero.

Why Is it Important?

Formula(s) to Calculate Contribution Margin

Common Mistakes

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