Analyze Contribution Margin

Explanation

Use this functionality to study the contribution margin per customer order. The page displays information regarding the contribution margin per unit, total per order line and total per order. The contribution margin consists of the difference between the sales price and the inventory value. The contribution margin is based in sales unit. Possible discounts for the customer are also included in the calculations. It is also possible to try extra discounts to determine how the contribution margin is affected. Do this by specifying a discount figure in the Extra Discount field.

The contribution margin is: ((buy quantity due * price conversion factor * base sales unit price * (1 - (discount + defined extra discount) / 100) * (1 - order discount / 100))) - (cost * buy quantity due * conversion factor.)

Prerequisites

N/A

System Effects

None. Analyze is done manually by the user.