Ep 3: MAGIC OF CONTRIBUTION MARGIN

Franchise industry executive and consultant, Shaun Butcher, explores the power and magic of using contribution margin to understand and accurately calculate break-even and profitability, from individual products and promotions to the entire business.A must for any business owner, manager, decision maker or support person who does not already utilise contribution margin calculations. TIMESTAMPS:(0:00) Start(0:11) Disclaimer & Introduction(5:49) Bad Maths In Action(13:30) Correcting The Maths(18:03) Contribution Margin Definition(18:35) Why Contribution Margin Is Important(22:00) Classifying Fixed & Variable Costs(28:47) Contribution Margin Uses(30:36) Calculate Contribution Margin On Products/Services(36:02) What This Calculation Means(37:07) Common Errors Calculating Contribution Margin(40:33) Use Contribution Margin To Calculate Break-Even(46:53) Calculate Beak-Even Using Contribution Margin With Anticipated Costs(50:43) Calculate Anticipated Profitability At Any Sales Level(54:18) Calculate The Number Of Units Required To Be Sold to Break-Even(58:07) Free Calculator Available (1:05:33) Wrap-Up & QuestionsCheck us out at: www.fmssupportservices.com.au Contact us at: [email protected] Follow us on Facebook: www.facebook.com/profile.php?id=61562852799935 Follow us on LinkedIn: www.linkedin.com/company/76260689