Definition
The Unit Contribution Margin (C) is Unit Revenue (Price, P) minus Unit Variable Cost (V):
The Contribution Margin Ratio is the percentage of Contribution over Total Revenue, which can be calculated from the unit contribution over unit price or total contribution over Total Revenue:
For example, if the price is Rs10 and the unit variable cost is Rs2, then the unit contribution margin is Rs8, and the contribution margin ratio is Rs8/Rs10 = 80%.
Read more about this topic: Contribution Margin
Famous quotes containing the word definition:
“Was man made stupid to see his own stupidity?
Is God by definition indifferent, beyond us all?
Is the eternal truth mans fighting soul
Wherein the Beast ravens in its own avidity?”
—Richard Eberhart (b. 1904)
“... if, as women, we accept a philosophy of history that asserts that women are by definition assimilated into the male universal, that we can understand our past through a male lensif we are unaware that women even have a historywe live our lives similarly unanchored, drifting in response to a veering wind of myth and bias.”
—Adrienne Rich (b. 1929)
“Im beginning to think that the proper definition of Man is an animal that writes letters.”
—Lewis Carroll [Charles Lutwidge Dodgson] (18321898)