Separate observed contribution movement across continuing-segment scale, mix, margin economics, new activity, and lost activity, then test whether a planned revenue reallocation remains economic once destination retention and source cost commitments are included.
About this interactive
The observed bridge compares revenue and contribution across up to six segments. Continuing-segment scale, mix, and margin economics are evaluated in every possible ordering, so interaction effects are shared rather than assigned by a fixed sequence; new and lost activity remain explicit. The forward reallocation test starts from Period B segment economics, moves an entered share of source revenue toward a destination segment over time, applies destination revenue retention and incremental margin, holds source costs until the entered release month, and includes a one-time transition commitment. The result isolates retained destination revenue, released source cost, net contribution, payback, and the margin, flexibility, and timing thresholds that determine whether the migration is economically positive inside the entered horizon. No external profit-pool benchmark is imposed. For more information, visit our Corporate Finance & Strategy practice.
Observed portfolio
Forward revenue reallocation
Observed contribution movement
Continuing-segment scale, revenue mix, and segment margins are moved from Period A to Period B in every possible order. New and lost activity remain separate because those segments do not exist in both periods.
Profit pool migration
Horizontal position is the change in continuing-segment revenue share. Vertical position is the segment’s average A/B contribution margin relative to the average continuing-portfolio margin. The highlighted label is the largest sequence-neutral mix drag or tailwind.
New activity
Lost activity
Forward reallocation
The forward test uses the Period B source and destination economics, phases the revenue migration monthly, and values the cost that can actually leave the source operating base only after the entered release date.
Monthly migration path
Monthly contribution includes destination contribution, the source revenue lost, released source cost, and the one-time transition commitment.
Operating thresholds
Each threshold holds the other forward assumptions constant and solves the single condition required for non-negative cumulative contribution.
What changed
PROFIT POOL MIGRATION ANALYZER: ILLUSTRATIVE DEFAULT RECORD OBSERVED PORTFOLIO Period A revenue: $43,000,000 Period B revenue: $48,000,000 Period A contribution: $13,180,000 Period B contribution: $12,910,000 Period A portfolio contribution margin: 30.7% Period B portfolio contribution margin: 26.9% Contribution movement: −$270,000 SEQUENCE-NEUTRAL OBSERVED ATTRIBUTION Continuing-segment scale: +$1,710,359 Continuing-segment mix: −$234,964 Continuing-segment margin economics: −$725,395 New activity: +$880,000 Lost activity: −$1,900,000 Reconciled contribution movement: −$270,000 FORWARD REALLOCATION ASSUMPTIONS Source segment: SMB Destination segment: Enterprise Period B length: 12 months Full source-revenue reallocation share: 25.0% Destination revenue retention: 99.0% Destination incremental margin adjustment: −1.0 pts Full migration realized by: M3 Source cost flex share after release: 95.0% Source cost release start: M2 One-time transition cost: $25,000 Forward horizon: 6 months FORWARD REALLOCATION ECONOMICS Source Period B contribution margin: 19.0% Destination Period B contribution margin: 35.0% Effective destination incremental margin: 34.0% Source revenue shifted across horizon: $1,145,833 Destination revenue retained: $1,134,375 Revenue leakage during migration: $11,458 Destination contribution generated: $385,688 Source cost released: $822,938 Net in-horizon contribution impact: +$37,792 Payback month: M5 Source-cost release timing drag: $58,781 OPERATING THRESHOLDS Break-even destination incremental margin: 30.7% Minimum source cost flex share at entered release month: 90.6% Latest source cost release month preserving non-negative in-horizon value: M2 MONTHLY REALLOCATION PATH M1: source revenue shifted $76,389 | destination revenue $75,625 | destination contribution $25,712 | source cost released $0 | net contribution impact −$75,676 | cumulative −$75,676 M2: source revenue shifted $152,778 | destination revenue $151,250 | destination contribution $51,425 | source cost released $117,562 | net contribution impact +$16,210 | cumulative −$59,467 M3: source revenue shifted $229,167 | destination revenue $226,875 | destination contribution $77,138 | source cost released $176,344 | net contribution impact +$24,315 | cumulative −$35,152 M4: source revenue shifted $229,167 | destination revenue $226,875 | destination contribution $77,138 | source cost released $176,344 | net contribution impact +$24,315 | cumulative −$10,837 M5: source revenue shifted $229,167 | destination revenue $226,875 | destination contribution $77,138 | source cost released $176,344 | net contribution impact +$24,315 | cumulative +$13,477 M6: source revenue shifted $229,167 | destination revenue $226,875 | destination contribution $77,138 | source cost released $176,344 | net contribution impact +$24,315 | cumulative +$37,792 FINDING Observed portfolio contribution declined by $270,000. Sequence-neutral attribution assigns +$1,710,359 to continuing-segment scale, −$234,964 to mix migration, −$725,395 to within-segment margin economics, +$880,000 to new activity, and −$1,900,000 to lost activity. In the forward reallocation test, shifting SMB revenue toward Enterprise retains $1,134,375 of destination revenue and produces $385,688 of destination contribution. After source cost release and transition cost, the six-month net contribution impact is +$37,792 and cumulative payback occurs in M5. The destination incremental margin must remain at or above 30.7% or source cost flexibility must remain at or above 90.6% for the entered migration to break even inside the horizon. Releasing source cost later than M2 makes the entered six-month case negative. METHOD STATUS Management-entered assumptions. The observed continuing-segment contribution pool is represented as total continuing revenue multiplied by segment revenue shares and segment contribution margins. Continuing-segment scale, mix, and margin economics are moved from Period A to Period B in every possible ordering and each mechanism receives its average marginal contribution effect. New activity is Period B contribution from segments with no Period A revenue; lost activity is negative Period A contribution from segments with no Period B revenue. The five displayed mechanisms reconcile exactly to total contribution movement. The forward test uses Period B segment economics. Source monthly revenue equals Period B source revenue divided by the entered Period B length. The entered source-revenue reallocation share phases in linearly through the entered realization month. Destination revenue equals shifted source revenue multiplied by the entered retention rate. Destination contribution uses the destination Period B contribution margin plus the entered incremental margin adjustment. Source associated cost equals shifted source revenue multiplied by one minus the source Period B contribution margin. Before the entered release month none of that source cost is released; from the release month onward the entered flex share is released. Net contribution equals destination contribution minus shifted source revenue plus released source cost less the one-time transition cost. No external profit-pool, mix, margin, retention, migration, or cost-flexibility benchmark is used.
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