In order to find success in the beverage alcohol business, entrepreneurs need to have an understanding of their financial metrics. In this video, Nolan Batalha, Accounting Manager at GHJ, describes the difference between margin and markup and explains how each should be calculated. Batalha also reveals the different types of margins and markups and some key terms related to each.
“[Contribution Margin] is an important metric for investors so it’s important to understand what it represents,” explains Batalha. “Contribution Margin is just our total revenue less our variable cost.”