• Monitored brand Production /
Contribution Margin targets versus actual results each year for possible leadership incentive decisions.
Not exact matches
Management has a long - term
target of achieving a
contribution margin of 40 % in the U.S. by 2020, and it believes things are running ahead of plan because of higher than anticipated revenue growth and moderate increases in content and other streaming costs.
For example if you have a 90 % gross
margin SaaS software product and assign a $ 1.1 M in quota for a rep (i.e., $ 1m in
contribution margin) that makes $ 250K at
target and assume another $ 50k in benefits and travel costs and $ 30k in marketing and support costs for a total of $ 330K, then you have a 3x LTV: CAC ratio in year 1.