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lets talk about what a contribution margin is in the context of accounting so lets say that you decide you want to make bicycles and you rent out some space this is your building where youre going to build the bicycles and you build your first bicycle and you have you have to buy some parts right so those are the the input your labor and and then of course these parts that you use to make your first bicycle and then you sell this bicycle you sell lets say sell for $300 you sell this bicycle for $300 and you say okay well how much were these parts how much did it cost how much actually went into the bicycle so lets say that the parts were $125 of parts right so then you say okay well I sold the bike for 300 and then I have to deduct this 125 in parts right so you take that out and then you have $75 uh is the difference there right so basically this is what it cost you to make the bike and then this is what you got for the bike and then this is whats left over so $175 um is not alt
