Contribution
About contribution with calculations and explanations
- Created by: megan
- Created on: 15-05-14 17:46
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- Contribution
- calculations
- Total Contribution
- Total revenue - TVC
- Contribution Per unit
- P per unit - VC per unit
- Total Contribution
- Definition
- Difference between sales revenue and variable costs
- Helps pay fixed costs then the rest is counted as profit
- Improvement
- Lower fixed costs
- Lower variable costs
- Raise selling price
- Positive
- if sales revenue outweighs variable costs
- If cont. covers fixed costs
- if sales revenue outweighs variable costs
- calculations
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