Contribution Margin Ratio - Revenue After Variable Costs
https://corporatefinanceinstitute.com:443/resources/accounting/contribution-margin-ratio-formula/
WEBCM ratio = (total revenue – cost of goods sold – any other variable expenses) / total revenue. A company has revenues of $50 million, the cost of goods sold is $20 million, marketing is $5 million, product delivery fees are $5 million, and fixed costs are $10 million. Contribution margin dollars = $50M – $20M – $5M – $5M = $20 million.
DA: 17 PA: 7 MOZ Rank: 86