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Direct Margin is the ratio of (Sales - direct costs)/Sales

or

(Sales - direct material - direct labour)/Sales

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12y ago

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How do you calculate Direct Margin as a percentage?

(selling price - direct cost)/selling price = direct margin


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What is Prime Margin?

Sales minus Prime cost = Prime Margines. Direct material and direct labor are often referred to as prime cost.


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Be as easy as flying colors?

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What is the medical term meaning a procedure in which the tumor and a margin of healthy tissue are removed?

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Is margin a greek or latin root?

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When A passive continental margin has a while an active margin does not.?

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Must be subtracted from sales to reach the contribution margin?

To reach the contribution margin, variable costs must be subtracted from sales revenue. These variable costs include expenses that fluctuate with production levels, such as direct materials, direct labor, and variable manufacturing overhead. The contribution margin represents the portion of sales revenue that contributes to covering fixed costs and generating profit. Thus, understanding and managing these variable costs is crucial for assessing profitability.