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What is the difference between contribution margin and gross margin?

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Question added by Deleted user
Date Posted: 2015/12/15
Essam Abdullaziz
by Essam Abdullaziz , Senior Retail Manager , Savola company

contribution margin that comes from managers and departments like travel expenses , car , water gas etc. gross margin is    all margin before  shrinkage .  

Sharafudheen Chettiyarthodi
by Sharafudheen Chettiyarthodi , Finance Manager , Obeikan Plastics (OPF)

Contribution margin is the difference between Sales & Variable cost; Sales - Variable cost=Contribution

Gross margin is the difference between sales & Cost of goods sold ;Sales-COGS=Gross Margin

The exact difference is in  Gross margin calculation   consideration will give to all cost to make sales.

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