Description
Return a contribution-margin bridge under an interaction allocation.
Business accounting and analytics distinguish gross, net, allocated, recognized and forecast amounts. Currency, period, eligibility and interaction-allocation conventions determine a reported contribution; reconciling one term does not verify revenue, payment rights or future commercial outcomes.
Return a contribution-margin bridge under an interaction allocation.
When to use this tool
Use Contribution Margin Bridge Term when reconciling the stated business amount, share, bridge or forecast convention.
How to use the tool and how it works
- Enter oldQuantity, newQuantity, oldUnitMargin, newUnitMargin, useNewQuantityForMargin. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read quantityEffect, marginEffect, crossTerm. Use the output convention below.
Return a contribution-margin bridge under an interaction allocation. Require nonnegative old/new quantities; when useNewQuantityForMargin, quantityEffect uses old margin and marginEffect new quantity, otherwise quantityEffect uses new margin and marginEffect old quantity; crossTerm = deltaQ*deltaMargin.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| oldQuantity | Old Quantity | Required. Finite number; minimum 0. |
| newQuantity | New Quantity | Required. Finite number; minimum 0. |
| oldUnitMargin | Old Unit Margin | Required. Finite number. |
| newUnitMargin | New Unit Margin | Required. Finite number. |
| useNewQuantityForMargin | Chooses the margin-versus-quantity allocation of the interaction; do not add the separately reported crossTerm again. | Required. Boolean. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| quantityEffect | Quantity Effect | Required. Finite number. |
| marginEffect | Margin Effect | Required. Finite number. |
| crossTerm | Cross Term | Required. Finite number. |
{
"input": {
"oldQuantity": 100,
"newQuantity": 120,
"oldUnitMargin": 5,
"newUnitMargin": 6,
"useNewQuantityForMargin": true
},
"output": {
"quantityEffect": 100,
"marginEffect": 120,
"crossTerm": 20
}
}Limitations and assumptions
- The two effects already sum to the full change; crossTerm is diagnostic and must not be added again.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use complete verified accounts and governing commercial terms, and apply the appropriate accounting and financial judgment for actual reporting, payment or investment decisions.
References
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