CONTRIBUTION MARGIN ANALYSIS Definition

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CONTRIBUTION MARGIN ANALYSIS is a technique used in brand marketing and product management to help a company decide what product(s) to add to its product portfolio. The manager asks what will happen to profits if a new product is added or an existing product is discontinued. Calculations take into account additional revenues, additional costs, effects on other products in the portfolio (referred to as cannibalization), and competitors reactions.

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NOMINAL RETURN is an investment return that does not take into account the effects of inflation on the investment or return.

DOLLAR BOND is long-term municipal bonds quoted on a decimal or dollar price basis versus other municipal bonds, which are normally quoted on the basis of yield to maturity.

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