For a business that makes products, a contribution margin helps you determine how much you'll need to make and sell to cover all your costs and begin to realize a profit. It's a basic metric used by ...

Both metrics assess a company's profitability, but in different ways Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor.

When you run a small business, it's important to always know your break-even point -- the amount of sales needed to pay for all of your costs in a period. Below break-even, you generate a loss; above ...