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Gross Margin vs Contribution Margin Formula
6:08
YouTubeEdspira
Gross Margin vs Contribution Margin Formula
People sometimes use the terms gross margin and contribution margin interchangeably, but they’re not the same thing. Most companies (e.g., Apple) define gross margin as the difference between net sales and cost of goods sold (or cost of sales): Gross Margin = Net Sales – Cost of Goods Sold Contribution margin, on the other hand, is ...
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