Contribution Margin

This video explains what the Contribution Margin is in the context of managerial accounting. The formula for calculating a firm's Contribution Margin is provided, and several examples are used to demonstrate how Contribution Margin is calculated and used in actual practice.
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[@kristoferho7288]

My Accounting ACCT 205 Professor from University of Kansas recommended this video to review for the exams and the final exam $$$$$

[@richardh4572]

I received notification this week that I passed my CMA - wouldn't have happened without a whole lot of your videos and practise tests. The fact that you provide this and other course material without charge is so amazingly wonderful and inspiring. Thank you.

[@Edspira]

Congratulations on passing the CMA exam, Richard! I am truly honored to have been a part of your educational journey, and I know it must have been a lot of work watching all those videos and doing the exams. I'm so happy for you and hope the achievement is everything you imagined it would be. I hope you find tremendous fulfillment, both personally and professionally! Wishing you the very best my friend 😀

[@JamesTownsendJian]

This was very well done. My accounting textbook made it vague and difficult to understand. Hence why it's a college textbook or else it'd have been a proper book. You cleared up all my questions, along with at least a half an hour of wasted time, in just a few short minutes. Kudos to you, sir. Kudos to you.

[@lucienibrahim5893]

dude you make life easier I learn more from you than i do from my instructors thanks!!

[@drasserngolo3057]

How did you come up with the 30 000 for VC

[@zenandezenande3941]

this guy deserves a Nobel Prize.He is straight to the point....Thanks for the content

[@felicia3525]

Thank you soooo much! I now understand. It seems as though teachers leave out small important details because they already know it. You saved me at least an hour. Now I get to enjoy life. Thanks again.

[@Edspira]

I'm glad this video helped you. Thanks for sharing!

[@eddie7031]

How did you get variable cost of $30,000 in your Contribution I/S ?

[@saniviersapphire5395]

We discussed this in class for an hour and yet I learned a lot more from this 5 minute video. Thanks sir!

[@MiriamNork]

Dear Sir, thank you for this presentation. I have a question: In the Contribution Margin Income Statement, are all variable operating expenses also included in the variable costs? Also, are all fixed operating costs included in the fixed costs? Please respond. Thank you Miriam Nork from Papua New Guinea

[@byekkam]

saved my life right before my final!! thank u so much. This video is very well explained and very helpful!!

[@Edspira]

Excellent! Glad you did well on your final!!

[@khalilfuller4939]

I understand the concept between I/S & Contribution I/S. My question is, are the words interchangeable or should companies worry about covering 30,000 (I/S) & 30,000 (C.I/S) to = $70,000 ?

[@danielles.3509]

Yay another class down. Onto Principals of Finance! I have to come back again and thank the teacher. Thank youuuu! Thank You!

[@Edspira]

Congrats! Thanks for watching :)

[@sashajacobs1037]

Very useful and well explain

[@poppysinclair]

if my lectures were taught like this life would be so much easier

[@Edspira]

Appreciate the kind words!

[@moisesgoncalves3019]

You explained like they're the same thing, like there are no difference at all when reaching the NI.Is that the case?

[@ariah5093]

This man is a saint

[@Edspira]

😀

[@TmnthpLeogirl]

Is finding contribution margin per unit different because doing homework for my accounting class and not sure if I did it right

[@Edspira]

You would find the contribution margin then divide by the number of units to get the contribution margin per unit.

[@adamjijo8961]

Thank you mahn

[@tungnguyenthach6384]

the video image is too poor, you need to fix it more

[@haphewchus5933]

Hopefully you reply here is my question This is the cm in units right? What if I want to get cm % how do we do that , I'm still in highschool and don't have accounting as of yet but learning from now on so I can flourish my finances , im stuck on this since the morning your help would be appreciated

[@ЮличДемидова]

how do you do that?

[@ridsanand7108]

Thx for your videos!small query... VC includes all the variable expenses(prod. & Non prod.) or just the variable production expense for calculating contribution margin ..thx!

[@classiccatastrophe1518]

Sir I have a doubt when calculating contribution margin do we have to add non production variable cost like selling and admin costs when calculating variable cost per unit

[@ajee8894]

I am sooooo grateful to have found this channel! I literally was struggling for pass 2 months in my class even though i read the text book and my teacher suck!!!! Thank you soooooooo much! i finally understand everything!!!!!

[@iamnottweezy]

i spent all day in school confused about this and now i understand finally

[@SonogniniScience]

Hi. This video is great! Can you please turn on the auto CC so that the hearing impaired can learn from this video too? Thanks!

[@adreto2978]

Legend! Textbooks always overcomplicate stuff like this

[@Zohirul-Jewel]

VC=variable cost=cost of making the product

[@hyonguyen9283]

Thank you for keep enlightening my whole accounting and finance life ❤️ If you can please support us on some certificate education (cia, acca,...) Much much appreciate ❤️

[@louiexx]

Watching November 2018 and this just made a lot of things a whole lot easier... Thank You.

[@samaysoni4015]

Beautiful video, thank you for this

[@JamesTitor]

thank you again

[@Edspira]

Happy to help! Best wishes my friend!

[@dumaoctavian8523]

what class is this one?

[@raquelm.w.7974]

Very helpful. Thank you!

[@TmnthpLeogirl]

so is the parts in the beginning could the variable cost also be variable expenses or are they different?

[@Edspira]

Variable costs means the same thing as variable expenses. They are synonymous. Good question!

[@hriddhanabiprassad9833]

Thank you so much!!

[@mohamedaisset9534]

What’s the difference between COGS and VC (variable costs)?

[@Edspira]

I actually have a video on each of these topics. Variable costs: edspira.com/topic/variable-costs COGS: edspira.com/topic/cost-goods-sold-manufacturing-firm Thanks for watching!

[@angelaxlee]

Thank you for making this so clear to me

[@damounkaoutar538]

thank you

[@kathleengalvan2354]

Thank you! This is a big help for my report later. I've learned a lot by the way. Not just in this video but all lessons related to Cost-Volume-Profit Analysis. Thanks again!

[@alfietorres]

Lifesaver

[@gsnctb3532]

رائع

[@danielles.3509]

Sorry I am lost on this and happened to get this same question incorrect on my test. I have seen the videos just not clicking. Sales - variable cost. Having the hardest time knowing where the 30k came from

[@Edspira]

Both the sales of $100,000 and variable costs of $30,000 were given information in the example. There is no calculation behind the 30,000. Best of luck with your studies!

[@danielles.3509]

Edspira oh hahhaha now wonder:) thank you!!!

[@laurieshanderson]

Perfect!

[@ترفيهوبس-ل8ل]

😃

[@TamNguyen-hg3ii]

the sound is not good I am quite disappointed

[@raizmini7121]

the sound is not good I am quite disappointed

[@DaisyGeekyTransGirl]

Do you have anything on the Weighted Average Contribution Margin?

[@Edspira]

Unfortunately not- I'll put that on my to-do list!