How much does each product contribute to your top-line revenue?
You can try to figure it out by calculating COGS and subtracting that from the product price...
But you run into the problem of variable costs.
Enter the contribution margin.
The contribution margin income statement is how you report each product's contribution margin.
But what is it, and how do you build one?
...and how is the contribution margin different from EBIT?
Keep reading to find out.