Contribution Margin
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MS: Margin Caruman · EN: Contribution Margin · ZH: 边际贡献
Meaning
Contribution margin is the difference between the selling price and the variable cost, whether per unit or in total. It shows how much each unit contributes towards covering fixed costs and then generating profit. Contribution per unit is used to calculate the break-even point.
Example
Fruit Juice Shop sells a glass of juice at RM8 with a variable cost of RM3. Contribution per unit is RM8 - RM3 = RM5. Each glass contributes RM5 towards covering fixed costs.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5