1.6.2 The Relationship Between Revenue & Costs Flashcards
1
Q
contribution equation
A
Selling price - variable cost per unit
2
Q
What is contribution
A
The profit made on each product
3
Q
What is total contribution
A
The contribution per unit X the number of units sold
4
Q
What is the break even point
A
Is the point where the firm’s costs are covered
