Contribution Margin

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  • čas přidán 16. 11. 2014
  • 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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Komentáře • 63

  • @richardh4572
    @richardh4572 Před rokem +35

    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
      @Edspira  Před rokem +6

      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
    @JamesTownsendJian Před 7 lety +58

    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.

  • @zenandezenande3941
    @zenandezenande3941 Před 5 lety +6

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

  • @kristoferho7288
    @kristoferho7288 Před 6 lety +13

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

  • @lucienibrahim5893
    @lucienibrahim5893 Před 7 lety +25

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

  • @saniviersapphire5395
    @saniviersapphire5395 Před 6 lety +7

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

  • @felicia3525
    @felicia3525 Před 6 lety +6

    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
      @Edspira  Před 6 lety

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

  • @kathleengalvan2354
    @kathleengalvan2354 Před 4 lety

    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!

  • @ajee8894
    @ajee8894 Před rokem

    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!!!!!

  • @danielles.3509
    @danielles.3509 Před 6 lety +2

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

    • @Edspira
      @Edspira  Před 6 lety

      Congrats! Thanks for watching :)

  • @louiexx
    @louiexx Před 5 lety

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

  • @angelaxlee
    @angelaxlee Před 5 lety

    Thank you for making this so clear to me

  • @poppysinclair
    @poppysinclair Před 3 lety +2

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

    • @Edspira
      @Edspira  Před 3 lety +2

      Appreciate the kind words!

  • @samaysoni4015
    @samaysoni4015 Před 5 lety

    Beautiful video, thank you for this

  • @iamnottweezy
    @iamnottweezy Před rokem

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

  • @byekkam
    @byekkam Před 7 lety +3

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

    • @Edspira
      @Edspira  Před 7 lety

      Excellent! Glad you did well on your final!!

  • @raquelm.w.7974
    @raquelm.w.7974 Před 4 lety

    Very helpful. Thank you!

  • @sashajacobs1037
    @sashajacobs1037 Před 8 lety +3

    Very useful and well explain

  • @ridsanand7108
    @ridsanand7108 Před 5 lety

    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!

  • @ariah5093
    @ariah5093 Před rokem +2

    This man is a saint

  • @hriddhanabiprassad9833

    Thank you so much!!

  • @adreto2978
    @adreto2978 Před 3 lety

    Legend! Textbooks always overcomplicate stuff like this

  • @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

  • @eddie7031
    @eddie7031 Před 2 lety +1

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

  • @drasserngolo3057
    @drasserngolo3057 Před 2 lety +1

    How did you come up with the 30 000 for VC

  • @SonogniniScience
    @SonogniniScience Před 5 lety

    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!

  • @laurieshanderson
    @laurieshanderson Před 5 lety

    Perfect!

  • @adamjijo8961
    @adamjijo8961 Před 2 lety +1

    Thank you mahn

  • @khalilfuller4939
    @khalilfuller4939 Před 5 měsíci

    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 ?

  • @JamesTitor
    @JamesTitor Před 2 měsíci

    thank you again

    • @Edspira
      @Edspira  Před 2 měsíci

      Happy to help! Best wishes my friend!

  • @damounkaoutar538
    @damounkaoutar538 Před 3 lety

    thank you

  • @TmnthpLeogirl
    @TmnthpLeogirl Před 6 lety +1

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

    • @Edspira
      @Edspira  Před 6 lety +1

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

  • @haphewchus5933
    @haphewchus5933 Před 4 lety

    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

  • @DaisyGeekyTransGirl
    @DaisyGeekyTransGirl Před 7 lety +1

    Do you have anything on the Weighted Average Contribution Margin?

    • @Edspira
      @Edspira  Před 7 lety +1

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

  • @moisesgoncalves3019
    @moisesgoncalves3019 Před 2 lety

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

  • @user-ob5sq7zb7l
    @user-ob5sq7zb7l Před rokem

    how do you do that?

  • @TmnthpLeogirl
    @TmnthpLeogirl Před 6 lety

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

    • @Edspira
      @Edspira  Před 6 lety +1

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

  • @mohamedaisset9534
    @mohamedaisset9534 Před 6 lety

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

    • @Edspira
      @Edspira  Před 6 lety +1

      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!

  • @alfietorres
    @alfietorres Před 4 lety

    Lifesaver

  • @hyonguyen9283
    @hyonguyen9283 Před 4 lety

    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 ❤️

  • @dumaoctavian8523
    @dumaoctavian8523 Před 3 lety

    what class is this one?

  • @gsnctb3532
    @gsnctb3532 Před 6 lety

    رائع

  • @Zohirul-Jewel
    @Zohirul-Jewel Před 7 lety

    VC=variable cost=cost of making the product

  • @danielles.3509
    @danielles.3509 Před 6 lety +1

    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
      @Edspira  Před 6 lety

      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
      @danielles.3509 Před 6 lety

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

  • @user-oq3cn6xj9e
    @user-oq3cn6xj9e Před 6 lety

    😃

  • @tungnguyenthach6384
    @tungnguyenthach6384 Před 2 lety

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

  • @TamNguyen-hg3ii
    @TamNguyen-hg3ii Před 2 lety

    the sound is not good I am quite disappointed

  • @raizmini7121
    @raizmini7121 Před 2 lety

    the sound is not good I am quite disappointed