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
    • 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


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