Profit is the ultimate goal for any business. Business owners selling goods or services use the unit contribution margin to determine the profit per unit. It is calculated as a percentage or dollar ...

Contribution margin is an important business accounting ratio that compares variable product and variable period expenses with the net sales or revenue for a given period. This measure closely relates ...

Both metrics assess a company's profitability, but in different ways Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor.