The amount of revenue remaining after deducting variable costs. It contributes to covering fixed costs and, once those are covered, generating profit. Some organisations use multiple contribution margin levels (for example, Contribution Margin 1 and Contribution Margin 2) to show profitability after successive categories of costs have been deducted.
Contribution Margin
The revenue remaining after variable costs, which helps cover fixed costs and, once covered, generate profit.
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Related Glossary Terms
The official compilation of permanent U.S. federal laws, providing the statutory basis for many contracting requirements.
A global classification system used to categorize products and services for procurement and spend analysis.
A unique 12-character identifier assigned via SAM.gov to organizations doing business with the federal government, replacing the DUNS number.
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