Breakeven - Contribution and Contribution per Unit Flashcards
1
Q
What is Contribution?
A
What a business needs to achieve from selling products in order to first cover its fixed costs and, thereafter, make a profit.
2
Q
Total Contribution =
A
Total Revenue - Total Variable Costs
3
Q
Contribution per Unit =
A
Selling Price (per unit) - Variable Cost (per unit)
4
Q
Breakeven Output (units) =
A
Contribution per Unit
