When we discuss contribution margin we typically separate product costs into variable and fixed costs. What is the relationship between revenue volatility and the contribution margin ratio? (Think in terms of what type of revenue profile do companies with high contribution margins have in comparison to the revenue profile of companies with low contribution margins). Typically would you expect a company with a low contribution margin to have more stable revenues or would you expect a company with a high contribution margin to have more stable revenues? Why is that?
discuss contribution margin we typically separate product costs into variable and fixed costs.
by | Sep 6, 2025 | Statistics
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