Asked by Zitlaly Flores on Jul 02, 2024

Contribution margin and gross margin mean the same thing.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the amount available to cover fixed costs and generate profit.

Gross Margin

The difference between sales revenue and the cost of goods sold, which represents the profitability of selling goods.

  • Comprehend the distinction and significance of the contribution margin within cost-volume-profit analysis.