Why is a contribution margin income statement more useful to managerial decision-makers than the income statement intended for external users?
Contents: Accounting Ratios: 11 Indications of Performance What is a contribution margin? Company What is a Contribution Margin Income Statement? Cost Volume Profit (CVP) Analysis The concept of contribution margin is applicable at various levels of manufacturing, business segments, and products. The contribution margin shows how much additional revenue is generated by making each additional …