Discover how to calculate contribution margin, a key profitability metric, by subtracting variable costs from sales revenue.

For the beginning investor, one of the most important keys to learning about a business is understanding its financial statements. And of the three major statements -- the balance sheet, income ...

Businesses use the high-low method of accounting when they want to accurately calculate the variable and fixed costs for a certain amount of sales. If a business finds that certain sales levels are ...

Marginal costs of production are defined as the overall change in costs when a company or manufacturer increases the amount produced by one unit. Marginal costs can help firms determine the level at ...

Understanding the cost of each unit you produce is essential to ensure your business remains profitable. To calculate the cost per unit, add all of your fixed costs and all of your variable costs ...

Cost structures (the ratio of fixed to variable costs) vary across and within industries. Hospital managers and policymakers can make better decisions when they under-stand cost structures, including ...

Understanding the expenses you find on the income statement is key to making smart investments. For the beginning investor, one of the most important keys to learning about a business is understanding ...