The concept of a contribution margin comes from the need for business managers to understand how profitable their businesses have become. For most managers, this is as simple as looking at something ...

For a business that makes products, a contribution margin helps you determine how much you'll need to make and sell to cover all your costs and begin to realize a profit. It's a basic metric used by ...

Discover how operating leverage can amplify profits through increased revenue. Learn the calculation and impact of fixed and variable costs on your business.

Both metrics assess a company's profitability, but in different ways Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor.

When you run a company, it’s obviously important to understand how profitable the business is. Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds ...

Gregory Milano is founder and CEO of Fortuna Advisors LLC and author of Curing Corporate Short-Termism, Future Growth vs. Current Earnings. “The perfect is the enemy of the good,” an aphorism often ...