Describe Revenue Contribution

Revenue contribution measures the proportion of total sales that comes from a particular source. It helps businesses identify their most valuable offerings or customer groups.

It is typically calculated by dividing the revenue generated by a specific segment by the total revenue of the organization and multiplying by 100 to express it as a percentage.
Formula: (Revenue from Segment / Total Revenue) × 100%

For example, if a company has two products, Product A generated $50,000 in revenue and Product B generated$150,000, with total revenue of $200,000. Product A's revenue contribution is ($50,000 / $200,000) × 100$150,000 / $200,000) × 100% = 75%.

$\boxed{\text{Revenue contribution is the amount of revenue a specific segment (product, service, unit, etc.) generates}}$
$\boxed{\text{relative to the organization's total revenue, often expressed as a percentage.}}$
\boxed{\text{It is calculated as (Revenue from Segment / Total Revenue) × 100%.}}