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Commerce · Calculator

Revenue Mix Calculator

Revenue tells you which line is loudest. Contribution tells you which line is paying for everything else, and they are frequently not the same line.

Run it with your own numbers.

Revenue tells you which line is loudest. Contribution tells you which line is paying for everything else, and they are frequently not the same line.

Revenue against contribution

Price times volume is revenue. Margin applied to revenue is contribution - what the line leaves behind once its own costs are met. Ranking lines by each usually produces two different orders.

The blended figure

Total contribution over total revenue is the blended margin, and it is what has to cover everything the lines do not: the overhead, the unbilled time, and the lines that have not worked yet.

What a mix cannot show

It says nothing about how much attention each line costs to run. A small-contribution line that consumes half your week is a different problem from one that runs itself, and no arithmetic here can see the difference.

Real questions, short answers.

What margin should I enter?

The one this line actually achieves after its direct costs, not the one on the price list. If you do not know it, that is the finding.

Why only four lines?

Four is usually enough to see the shape. If you have many more than four, the prior question is whether they are really separate lines.

Should I include a line with no volume yet?

Leave it at zero. A projected line mixed with realised ones produces a blended figure that describes neither.

The All Frontier Global estate

Developed by Amit Jain at allfrontierglobal.com