Contribution margin is the percentage of what is left over for

the company after making the sale. In general, you need a

30% contribution margin or higher in order to make a nice
profit. Remember to keep an eye on your contribution
margins as you change your prices in marketing.

In summary, to schedule production for your product you

would do the following: Estimate a best case for demand for
each product this year. Display the Production worksheet.
Observe existing inventory. Schedule production to meet
best case demand less existing inventory. Save the
decisions.