![]() Such an income statement is always a part of basic finance and accounting, in fact, as you can see from this Udemy course on basic financial accounting.Ĭontribution Margin and the Income Statement And the way to go about doing so is through use of what’s called a contribution margin income statement. Of course, in business you need to be able to properly account for your contribution revenues, or income, for a variety of reasons. ![]() The widget’s “contribution” to the manufacturer’s revenue earned is that portion of sales revenue not eaten up by the maker’s variable costs, with the contribution able to go towards the maker’s fixed costs, for one. ![]() For example, an individual widget – one of a thousand, say – would have a contribution margin that reflects its selling price minus its variable cost. In business, the contribution margin is essentially the dollar contribution per unit of whatever it is that’s being made, sold, or offered.
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