What is Contribution Margin (CM1)?
Revenue per unit minus all direct delivery costs (COGS, payment fees, onboarding, support). It tests whether the product itself is viable.
Where you will use it: this term comes up in the Entrepreneurial Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Entrepreneurial Finance course by Devon Coombs, CPA, MBA.