Contribution Margin Percent (CM%)

The Contribution Margin Percent calculator compute the percent contribution margin based on the

INSTRUCTIONS: Enter the following:

• (SP)  This is the selling price percent
• (VC)  This is the variable cost percent

Contribution Margin Percent (CMP):  The calculator returns the percent.

The Math / Science

The Contribution Margin Percent equation is:

         CMP = SP - VC

where:

• CMP = Contribution Margin Percent
• SP = Selling Price Percent
• VC = Variable Cost Percent.  The percentage of variable cost. Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies, which tend to remain the same regardless of production output.

This calculates the contribution margin for percentage in a business. The contribution margin is a cost accounting concept that allows a company to determine the profitability of individual products. 

Hospitality Calculators

• Average Cost per Room - Average expense per room for a period of time.
• Average Daily Rate - Average daily income rate for rooms rented
• Average Sales per Guest Forecast - Forecast based on total forecast and guest count forecast.
• Break-Even Point in Guests Served - Computes the number of guests needed to break even based on fixed costs and margin per guest.
• Contribution Margin per Guest - Computes the margin per guest based on selling price per guest and variable cost per guest.
• Contribution Marge Percent - Computes the percent of contribution margin based on the Selling Price percent and the Variable Cost percent.
• Cost of Food Consumed - Computes the cost of food based on inventory change and purchases.
• Estimated Room Expenses -  Computes the estimated annual expense of rooms based on the expense per room and number of rooms.
• Food Cost Percent for a Restaurant - Computes the percent of costs associated with food for a restaurant.
• Food Selling Price - Computes selling price based on Item Food Cost and percent allocated to food commodity.
• GOPPAR - Gross Operating Profit Per Available Room - Computes the profit based on the gross profit and the total rooms available.
• Guest Count Forecast - Guest count forecast based on last year's and an expected increase.
• Percent Sales Variance - Computes the percentage of the difference in sales in two periods. 

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
• "Contribution Margin Definition | Investopedia." Investopedia. N.p., 19 Nov. 2003. Web. 07 Aug. 2015.