Live briefing
Everything about Contribution margin
Unit selling price minus its variable cost
Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis. Wikipedia →
🧠Start here: a 6-step reading path
- Read the overview: Contribution marginA 5-minute orientation
- Skim a recent paper: Trends in Revenue, Cost, and Contribution Margin for Total Joint Arthroplasty 2011-2021Influential work since 2022
- Pick up a classic book: FaulknerThe most-reprinted book on the subject
- Read the landmark paper: Cost and contribution margin of transcatheter versus surgical aortic valve replacementCited 45 times
- Go sideways: Cost–volume–profit analysisA closely related topic
- Go sideways: Break-even pointA closely related topic
đź“– Definitions
No dictionary entry for this exact phrase.
🗂️ The subject at a glance
🏆 Landmark papers (most cited)
Cost and contribution margin of transcatheter versus surgical aortic valve replacement
Contribution of vascular-plant carbon to surface sediments across the coastal margin of Cyprus (eastern Mediterranean)
An Acute Care Surgery Service Generates a Positive Contribution Margin in an Appropriately Staffed Hospital
Using the contribution margin aspect of menu engineering to enhance financial results
Contribution of nitrate to the uptake of nitrogen by phytoplankton in an ocean margin environment
Hospital Revenue, Cost, and Contribution Margin in Inpatient Versus Outpatient Primary Total Joint Arthroplasty
Trends in Revision Total Hip Arthroplasty Cost, Revenue, and Contribution Margin 2011 to 2021
Robust Optimization Approach to Process Flexibility Designs with Contribution Margin Differentials
🆕 Influential since 2022
Trends in Revenue, Cost, and Contribution Margin for Total Joint Arthroplasty 2011-2021
The Financial Feasibility of Bilateral Total Knee Arthroplasty: A Matched Cohort Analyses of Revenue and Contribution Margin Between Simultaneous and Staged Procedures
Simultaneous Versus Staged Bilateral Total Hip Arthroplasty: A Matched Cohort Analysis of Revenue and Contribution Margin
Contribution margin per hour of operating room to reallocate unutilized operating room time: a cost-effectiveness analysis
The electrical structure of the lithosphere in the southeastern margin of the Amazonian craton: Contribution to West Gondwana tectonics
đź“š Books worth reading
FaulknerDoreen Fowler · 1997
Money, time, and rationality in Max WeberStephen D. Parsons · 2003
Ranked by number of editions on Open Library, a rough measure of how lasting a book is.
đź”— Related topics
- Cost–volume–profit analysis Cost–volume–profit (CVP), in managerial economics, is a form of cost accounting. It is a simplified model, useful for elementary instruction and for short-run…
- Break-even point The break-even point (BEP) in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal, i.e. "even"…
- Cost accounting Cost accounting is the process of recording, classifying, analyzing, allocating, and reporting an organization's costs. It is primarily used within management…
- Operating leverage Operating leverage is a measure of how revenue growth translates into growth in operating income. It is a measure of leverage, and of how risky, or volatile…
- Operating margin In business, operating margin—also known as operating income margin, operating profit margin, EBIT margin and return on sales (ROS) - is the ratio of operating…
- Contribution profit-based pricing Contribution profit–based pricing (German: Deckungsbeitrag) is a pricing strategy that focuses on maximizing the profit contribution generated by a product…
- Net income In business and accounting, net income is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes, and…
- Gross margin Gross margin, or gross profit margin, is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as…