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

The world of microeconomics and business decision-making hinges upon a key concept: marginal cost. In the simplest terms, marginal cost represents the expense incurred to produce an additional unit of ...

Determining the optimal sales price is a critical task for any business aiming to maintain profitability. The process ...

Elysse Bell is a finance and business writer for Investopedia. She writes about small business, personal finance, technology, and more. Erika Rasure is globally-recognized as a leading consumer ...