210 Special Orders Flashcards
1
Q
Special orders
A
An extra order or an order/item specifically requested by the customer
2
Q
Contribution
A
Allows a business to see if each of its products covers its own variable costs
After variable price has been taken away from the selling price, what’s left contributes to paying off the fixed costs.
After these have been paid, profit is left
3
Q
Total contribution
A
Total revenue - Total variable costs
4
Q
Contribution per unit
A
Selling price per unit - Variable cost per unit
