The contribution margin is calculated by subtracting variable costs from total sales revenue. The formula is: Contribution Margin = (Total Sales Revenue – Variable Costs) / Total Sales Revenue. This metric represents the portion of revenue available to cover fixed costs and contribute to profit after covering variable expenses.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
Recommended Digital Assets for You
Suggested Resources
Add AI to Your Order-to-Cash Process

AR Automation for JD EDwards

AR Automation for SAP

AR Automation for Oracle

AR Automation for NetSuite

AR Automation for PeopleSoft
