Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs.
- Activate the contribution margin sales model
- Click Settings → CRM → Products:
- You can now add a product's cost price and its selling price. Simply click the Price and Cost tabs:
- By adding a purchase cost, you can then display the calculated contribution margin when adding an:
Imagine you add a product "Computer A". You set the price at 1,000 SEK with a purchase cost of 500 SEK. Your contribution margin is 500 SEK:
View an opportunity, order or subscription and you'll see the CM: