When you make a product or deliver a service and deduct the variable cost of delivering that product, the leftover revenue is the contribution margin.
Gallo, A. Contribution Margin: What it is, How to Calculate it, and Why You Need it. Harvard Business Review, https://hbr.org/2017/10/contribution-margin-what-it-is-how-to-calculate-it-and-why-you-need-it
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