Contribution - What is contribution in business?

Q: What is contribution in business?

What is contribution? The concept of contribution is a crucial one in business. It focuses on the returns (contribution) a business makes from each unit of product sold and whether that return is enough to allow the business to make money overall after taking account of its fixed costs.

Answer

Contribution, what is it? In the corporate world, the idea of contributing is fundamental. The analysis centers on the returns (contribution) that a company earns from each product unit sold and whether or not these returns are sufficient to generate profits after accounting for fixed expenditures.

Contribution - What is contribution in business?

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