Module+5000+I.+Introduction+and+Learning+Objectives

@I. Module 5000 Introduction and Learning Objectives MJH

Introduction and Learning Objectives

The Contribution margin is the margin is the total amount remaining after you have subtracted the variable expenses from the sales revenue. Sales Revenue - Variable Costs = Contribution Margin
 * The Definition and Explanation of a Contribution Margin is: **

In other words the contribution margin it is the amount of funds allocated to cover fixed expenses to show profits over the given time period. During that given period if the contribution margin cannot cover the fixed expenses, the company will see a loss for that same period.

Contribution Margin - Fixed Costs = Loss Help the user understand the meaning and practicality of using the Contribution Margin and Basics of Cost Volume Profit (CVP) Analysis Share examples of a contribution margin Share the advantages and disadvantages of calculating the contribution margin.
 * Objective: ** The objectives for this Wiki are to: