What is 'contribution margin III' in SAP CO-PA - Profitability Analysis?

contribution margin III - Overview

• Component: CO-PA

• Component Name: Profitability Analysis

• Description: The contribution of a product towards covering administrative overhead.

contribution margin III - Details

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  Key Concepts: 
  Contribution Margin III is a component of SAP's CO-PA Profitability Analysis. It is a measure of the profitability of a product or service, calculated by subtracting all variable costs from the sales revenue. This measure is used to determine the profitability of a product or service, and can be used to compare different products or services. 
  
  How to use it: 
  Contribution Margin III can be used to compare the profitability of different products or services. It can also be used to identify areas where costs can be reduced in order to increase profitability. Additionally, it can be used to identify areas where sales can be increased in order to increase profitability. 
  
  Tips & Tricks: 
  When using Contribution Margin III, it is important to ensure that all variable costs are included in the calculation. Additionally, it is important to ensure that all sales revenue is included in the calculation. 
  
  Related Information: 
  Contribution Margin III is related to other components of SAP's CO-PA Profitability Analysis, such as Contribution Margin I and Contribution Margin II. Additionally, it is related to other measures of profitability, such as Gross Profit Margin and Net Profit Margin.