Contribution Margin definition

Contribution Margin means operating revenues less cost of revenues, selling and marketing expenses and research and development expenses.

Contribution Margin for this purpose is calculated as gross revenue from sales of products utilizing the Purchased Assets, less: (i) cost of goods sold, (ii) credit card processing fees, (iii) sales tax, (iv) shipping costs, (v) coupons, returns, and allowances, and (vi) direct and indirect sales commissions paid by Buyer. The aggregate Contingent Consideration payable over the Contingent Consideration Period (defined below) is capped at two million dollars ($2,000,000.00) (the “Contingent Consideration Cap”). The Contingent Consideration Period runs from the termination of the TSA (as defined below) until the earlier of: (i) achieving the Contingent Consideration Cap, or (ii) December 31, 2025. There is no minimum contingent consideration payable by Buyer. For the avoidance of doubt, and by way of example, if the sales of the products utilizing the Purchased Assets by Buyer fails to exceed $2,000,000 for any year during the Contingent Consideration Period, there will be no Contingent Consideration payable to Seller by Buyer for that year. In any year during the Contingent Consideration Period in which the sales of the products of Buyer utilizing the Purchased Assets exceeds $2,000,000, there will be Contingent Consideration payable to Seller by Buyer in any such year, calculated at the rate of five percent (5%) of the amount of the Contribution Margin on sales in excess of $2,000,000 for that year. Within ninety (90) days after the end of each fiscal year during the Contingent Consideration Period, Buyer shall prepare and deliver the calculation of the amount of the Contingent Consideration for such fiscal year, if any, along with reasonable detail to allow the Seller to review and verify the same.

Contribution Margin means an amount equal to 25% of the revenues generated from an SES Contract.

Examples of Contribution Margin in a sentence

• We do not use Contribution and Contribution Margin as measures of overall profitability.

• Deducting fixed (structural) costs, period depreciation and amortisation and impairments from the Contribution Margin gives EBIT.

• Structural expenses are calculated by deducting period depreciation and amortisation, impairments and the Contribution Margin from EBIT.

• We present Contribution and Contribution Margin because they are used extensively by our management and board of directors to manage our operating performance, including evaluating our operational performance against budget and assessing our overall operating efficiency and operating leverage.

• Break-even Analysis: Difference between Marginal and Absorption Costing Techniques; Concept of Relevant Cost; Application and Use of Contribution Margin and other Concepts for Planning and Decision-making (under Break-even Analysis) Variance Analysis: Meaning and Use of Standards and Variances; Major Classification of Variances including Material, Labour and FOH Variances, and their Computation.

More Definitions of Contribution Margin

Contribution Margin means net revenue from sales (gross revenue net of refunds or chargebacks), less expenses related to the provision of services or equipment under the contract.

Contribution Margin means the amount equal to Net Sales less (i) all reasonable charges from June 1, 1999 to the Closing for overhead directly associated with the Products and the direct and indirect cost of goods (absent the cost of Inventory paid at the Closing Date by Bioglan), and (ii) returns from the period from June 1, 1999 to the Closing.

Contribution Margin means the contribution margin (being (i) revenue less direct cost divided by (ii) revenue), as calculated in accordance and consistent with Atento Brazil’s historic management accounts as illustrated in Schedule XX. For purposes of clarity, Contribution Margin shall be expressed as a percentage.

Contribution Margin has the meaning given such term in the Schedule to this Section.

Contribution Margin means Market Contribution less distribution expenditure;

Contribution Margin means *, less (a) ** and (b) ** for the applicable period.

Contribution Margin shall be calculated in accordance with Exhibit P consistent with past practice in the ordinary course of the Subject Companies’ business.