Marginal profit
lastmod 2025-08-26created 2025-08-262 edits
Marginal profit is a management accounting concept: sales minus variable costs. Marginal profit divided by sales is called the marginal profit ratio, and it is the profit that increases as sales increase by one unit.
Marginal profit includes fixed costs. It is expressed by the following formulas.
- Marginal profit = Sales - Variable costs
- Marginal profit = Fixed costs + Profit
See also
- Korean: 회계
- Korean: 한계이익 (Marginal profit)
- Korean: 공헌이익 (Contribution margin)
- Korean: 변동비
- Korean: 고정비