Home › Finance Formulas › Earnings Per Share Formula › Kuala Lumpur Stock Exchange Bursa Saham News Earning Per Share Earnings Formula Cres Diluted Shares Adjusted Eps Calculate Preferred Dividends Post Announcement Drift Compute

Finance Formulas / July 10, 2018 / Kenley Hopper

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest. Compound interest is standard in finance and economics.

Contribution margin is a product’s price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents the total earnings available to pay for fixed expenses and to generate a profit. The contribution margin concept is useful for deciding whether to allow a lower price in special pricing situations. If the contribution margin at a particular price point is excessively low or negative, it would be unwise to continue selling a product at that price. It is also useful for determining the profits that will arise from various sales levels.

92 out of 100 based on 220 user ratings

We Also Think You’ll Like

Knowingpains

Category

© 2018 Knowingpains. All rights reserved