A product's contribution margin tells you how much that product contributes toward paying your company's fixed costs -- and, once those costs have been covered, how much it contributes toward profit.

Small and large businesses need to understand the relationship between cost, volume and profit to develop their pricing strategies. Setting prices too high might mean lost sales, while discounting ...

When you run a company, it’s obviously important to understand how profitable the business is. Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds ...