By comparing actual performance against budgeted targets, you can assess your business’s financial health, identify variances, and adjust your strategies as needed to meet your goals. Depending on your location and business activities, you may also be subject to other taxes and fees, such as local business taxes, professional license fees, or franchise taxes. It’s […]

Here, we are calculating the contribution margin on a per-unit basis, but the same values would be obtained if we had used the total figures instead. Next, the CM ratio can be calculated by dividing the amount from the prior step by the price per unit. The analysis of the contribution margin facilitates a more […]

You can use a spreadsheet, such as Google Sheets or Microsoft Excel, to include columns by product, enabling you to compare the contribution margin for each of your business products. The contribution margin can be expressed as the number of dollars as we have seen, but it can also be presented as a percentage. Contribution […]