For this week’s discussion, post 4–5 paragraphs discussing the meaning and importance to the business of the contribution margin. Consider as part of your post:
Is contribution margin part of financial accounting or managerial accounting, or both?
What kinds of costs, such as packaging, might be easy to forget when calculating production costs and contribution margin? Provide any examples that you may have witnessed in the past.
Discuss the risk to the company of miscalculating contribution margin.
Find or create an example of a contribution margin. If the contribution margin per unit increases, how does this affect the break-even point in terms of units sold?
The following article provides details about different aspects of packaging that may need to be considered as part of the accounting approach related to contribution margin:
Atagan, G., & Yükçü, S. (2013). Effect of packing cost on the sales price and contribution margin. Ege Academic Review, 13(1), 1–9.