Business & ManagementIB

Contribution

Contribution...Total contribution the amount of money left over after variable costs have been subtracted from revenue. The money...
Contribution

Total contribution the amount of money left over after variable costs have been subtracted from revenue. The money contributes towards fixed costs and profit.

    Total contribution = (Selling price − Average variable cost) × Quantity

    Total contribution = Total revenue − Total variable costs

 Contribution per unit = Selling price − Average variable cost

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