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What you’re describing is called the Contribution Margin. https://www.investopedia.com/terms/c/contributionmargin.asp https://www.investopedia.com/terms/c/cont
by tiffanyh 7y ago
What you’re describing is called the Contribution Margin.
https://www.investopedia.com/terms/c/contributionmargin.asp https://www.investopedia.com/terms/c/contributionmargin.asp
Essentially, how much did that add-on ($100m) service “contribute” to the companies overall margin ... which obviously factors in absolute dollars
Edit: fixed typo