Gross profit is an important key performance indicator (KPI) to track, but so is the contribution margin. Many business owners, unfortunately, overlook contribution margin or do not fully understand what it represents. To truly understand your business's financials, learn what contribution margin is, how you calculate it, and what the number means for your business's ability to grow and expand.
Among the hundreds of professional services companies we count as clients, we have figured out one thing that rings.
