Contribution margin
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IGC-DEFINITION (abbreviated)
Contribution margin / Deckungsbeitrag
The contribution margin may be defined as the surplus of net revenue over the costs clearly entailed without allocating structure costs using a key.
Contribution margin I (CM I) is calculated by subtracting the proportional costs of sales (product costs) from the net revenue. CM I demonstrates how much the individual article, the product, etc. contributes towards covering the structure costs of a business as well as towards the profit. It is the yardstick for assessing a product’s profitability.
from: IGC-Controller-Wörterbuch, International Group of Controlling (Hrsg.)
Source
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