5.2a - Contribution Flashcards
1
Q
Contribution definition
A
The difference between selling price and variable costs
2
Q
Profit formulae
A
- Revenue - total costs
- Total contribution - fixed costs
3
Q
Contribution per unit formula
A
Selling price - variable costs per unit
4
Q
Total contribution formulae
A
- Contribution per unit X units sold
- Revenue - total variable costs
