Buss 1

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what is contribution?
the amount of money that is put towards paying the fixed costs of a business and any profit, it is the difference between selling price and variable costs.
1 of 5
contribution per unit...
selling price - variable cost
2 of 5
total contribution
total revenue - total variable cost
3 of 5
the selling price for both logos is £3000. The variable cost for logo A is £2500, and logo B is £800. Work out the contribution per unit for each logo.
logo A - £500, logo B - £2200.
4 of 5
which one should you chose and why?
logo B, because it contributes more to fixed costs and any profit made.
5 of 5

Other cards in this set

Card 2

Front

selling price - variable cost

Back

contribution per unit...

Card 3

Front

total revenue - total variable cost

Back

Preview of the back of card 3

Card 4

Front

logo A - £500, logo B - £2200.

Back

Preview of the back of card 4

Card 5

Front

logo B, because it contributes more to fixed costs and any profit made.

Back

Preview of the back of card 5

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