Deckungsbeitrag (EN)

Deckungsbeitrag

The contribution margin shows how much a product contributes to covering fixed costs and ultimately to the company's profit. It is calculated by subtracting the variable costs of the product from the revenue. In cost and performance accounting, the contribution margin is a key metric for assessing the profitability of individual products or product lines.

Calculation

flowchart TD     A[Revenue] --> B[- Variable Costs]     B --> C[= Contribution Margin]     C --> D[- Fixed Costs]     D --> E[= Profit/Loss] 

In Context

• Typically used together with break-even analysis
• Related to: Overhead costs, full costing, income statement
• Example use: Decision on maintaining or discontinuing product lines