Franchise industry executive and consultant Shaun Butcher explores the power and magic of using Contribution Margin to understand and accurately calculate break-even and profitability, from individual products and promotions to the entire business.

A must for any business owner, manager, decision maker or support person who does not already utilise Contribution Margin calculations.

TIMESTAMPS:

(0:00) Start

(0:11) Disclaimer & Introduction

(5:49) Bad Maths In Action

(13:30) Correcting The Maths

(18:03) Contribution Margin Definition

(18:35) Why Contribution Margin Is Important

(22:00) Classifying Fixed & Variable Costs

(28:47) Contribution Margin Uses

(30:36) Calculate Contribution Margin On Products/Services

(36:02) What This Calculation Means

(37:07) Common Errors Calculating Contribution Margin

(40:33) Use Contribution Margin To Calculate Break-Even

(46:53) Calculate Beak-Even Using Contribution Margin With Anticipated Costs

(50:43) Calculate Anticipated Profitability At Any Sales Level

(54:18) Calculate The Number Of Units Required To Be Sold to Break-Even

(58:07) Free Calculator Available

(1:05:33) Wrap-Up & Questions

Check us out at: www.fmssupportservices.com.au

Contact us at: [email protected]

Follow us on Facebook: www.facebook.com/profile.php?id=61562852799935

Follow us on LinkedIn: www.linkedin.com/company/76260689