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Business Metrics
Contribution Margin in Business Metrics Formulas
The Contribution Margin can be stated on a gross or per-unit basis. It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm’s costs. And is denoted by Cm.
Business Metrics formulas that make use of Contribution Margin
f
x
Customers Lifetime Value with Discount Rate
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FAQ
What is the Contribution Margin?
The Contribution Margin can be stated on a gross or per-unit basis. It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm’s costs.
Can the Contribution Margin be negative?
{YesorNo}, the Contribution Margin, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.
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