BReak even points is where contribution covers fixed cost.........if decision has to be make regarding BE where cont. related to sales from previous period production (opening stock) and current period production (i.e. contribution different for both.........formula FC/cont pu can be used for FC=this year FC-minus-cont from opening/previous period prod (opening unitxcont pu previous period).

Notes Flashcards by Yassar Hayat

Decision making

BReak even points is where contribution covers fixed cost………if decision has to be make regarding BE where cont. related to sales from previous period production (opening stock) and current period production (i.e. contribution different for both………formula FC/cont pu can be used for FC=this year FC-minus-cont from opening/previous period prod (opening unitxcont pu previous period).
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