Contribution Margin Calculator
| Parameter | Description | Example Value |
|---|---|---|
| Sales Revenue | The total revenue generated from sales. | $20,000 |
| Variable Costs | The total variable costs associated with the production of goods. | $8,000 |
| Contribution Margin | The amount remaining from sales revenue after variable costs are deducted (Sales Revenue – Variable Costs). | $12,000 |
| Contribution Margin Ratio | The percentage of sales revenue remaining after variable costs are deducted (Contribution Margin / Sales Revenue * 100). | 60% |