Compare the contribution margin with the gross margin.
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Compare the contribution margin with the gross margin.
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Contribution margin and gross margin are two important financial metrics used to evaluate the profitability of a company While both metrics relate to a companys revenue and costs they differ in how they are calculated and what they represent Gross margin is the difference between a companys revenue and its cost of goods sold COGS It is expressed as a percentage and represents the profit ...View the full answer
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Related Book For
Introduction To Management Accounting
ISBN: 9781292412566
17th Edition, Global Edition
Authors: Charles Horngren, Gary L Sundem, Dave Burgstahler
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