Operations Efficiency and Contribution Margin

There is no end to the number of choices an owner must make and sometimes the most difficult are choosing among several good alternatives. For example, if there is an imperative to increase your contribution margin in order to drive better profit margins, then should you invest in increasing sales or improving operational efficiencies? What if, for the same investment, you could increase sales by 10% or reduce operating costs by 5%, which should you do?

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