Definition: Van Diemen's Land, the island south of mainland Australia, is now known as Tasmania. In the 1800s it was a penal colony to which the British government sent convicts. Some of the Irish rebels tried for their parts in the Young Ireland movement of the 1840s were sent to Van Diemen's Land.n the 1800s it was a penal colony to which the British government sent convicts. Some of the Irish rebels tried for their parts in the Young Ireland movement of the 1840s were sent to Van Diemen's Land.
What is contribution margin? In accounting contribution margin is defined as revenues minus variable expenses. In other words, the contribution margin reveals how much of a company's revenues will be contributing (after covering the variable expenses) to the company's fixed expenses and net income.
In this example the contribution margin per unit is $14 (the selling price of $20 minus the variable manufacturing costs of $4 and variable SG&A expenses of $2). Hence, the contribution margin ratio is 70% (the contribution margin per unit of $14 divided by the selling price of $20). This contribution margin ratio tells us that 70% of the sales, revenues, or selling price is available to cover the $31,000 of monthly fixed costs and fixed expenses.