CONTRIBUTION MARGIN Definition

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CONTRIBUTION MARGIN (CM) is the difference between sales and the variable costs of the product or service, also called marginal income. It is the amount of money available to cover fixed costs and generate profits.

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STRIPPED BOND is a bond that can be subdivided into a series of zero-coupon bonds.

SEGMENTATION is the act of dividing or partitioning; separation by the creation of a boundary that divides or keeps apart, e.g. segmenting a market along the characteristics and needs of a particular consumer group.

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