Small-Business Profitability: Read the Profit Layers
Separate contribution, gross profit and operating profit so each result supports the decision it actually measures.
Tag: contribution
List of all related Margin101 business guides.
Break-Even Analysis: Threshold, Not Forecast
Turn unit contribution and fixed costs into a sales threshold, then test whether the required volume and capacity are plausible.
Ecommerce Profitability: A Per-Order Decision Map
Build contribution per order, then test fees, shipping, returns, acquisition, fulfilment and product mix one decision at a time.
How to Test a Free-Shipping Threshold
Test basket size, qualifying share, shipping cost and order-change assumptions around a contribution-preserving threshold.
How to Test a Price-Volume Trade-off
Compare price and unit contribution on the same period basis without pretending the calculation predicts customer demand.
Contribution per Order After Ecommerce Fees
Reconcile product, fulfilment, platform, payment, returns and acquisition costs without double counting the fee stack.