Finance Formulas / July 19, 2018 / Avalynn Orr
The contribution margin is an integral aspect when calculating the break-even point of sales or a target level of sales. The contribution margin determines the portion of each sale that is attributed to covering fixed costs. For this reason, fixed costs divided by the contribution margin results in the number of units needed to be sold to break-even. To find a target net income, the target amount is added to total fixed costs.
CPC stands for Cost Per Click and is an important metric for marketers to understand when analyzing the performance of their digital campaigns and arbitraging opportunities. The formula to calculate cost per click is the cost to the advertiser divided by the amount of clicks.
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