When you run a small business, it's important to always know your break-even point -- the amount of sales needed to pay for all of your costs in a period. Below break-even, you generate a loss; above ...

The concept of a contribution margin comes from the need for business managers to understand how profitable their businesses have become. For most managers, this is as simple as looking at something ...

Both metrics assess a company's profitability, but in different ways Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor.

Contribution margin is used to help measure product profitability. It helps business owners understand how sales, variable costs and fixed costs all influence operating profit. The larger the ...