TL;DR: Revenue minus variable costs tells you whether each sale helps cover the business.
This matters more than top-line bragging. It shows whether volume is your friend or enemy.
A product that sells for $50 with $38 of variable cost leaves only $12 to cover fixed costs, overhead, and profit.
Treating all costs the same and losing visibility into what each sale actually contributes.
Revenue minus variable costs tells you whether each sale helps cover the business.
You are here because this concept becomes more useful after Unit Economics and before LTV vs CAC.