kontributiomarginaali
Kontributiomarginaali is a Finnish term that translates directly to “contribution margin” in English. It represents the portion of each sale that remains after variable costs have been deducted and that can be applied to cover fixed costs and ultimately to generate profit. The contribution margin is a key figure in managerial accounting, cost–volume–profit analysis, and business decision‑making processes. It is used to assess the profitability of individual products, product lines, or business segments, to determine optimal pricing strategies, and to plan for changes in production or sales volume.
Mathematically, the contribution margin (CM) can be expressed as: CM = Sales price per unit – Variable cost
In practice, managers use contribution margin analysis to make decisions about product mix, special orders, discontinuation
While the term is predominantly used in Finnish business literature, it aligns with the internationally recognized