Contribution is the amount of money from each sale that goes towards paying for the fixed costs. This is calculated by: revenue per sale - variable costs per unit. Then the money left goes towards paying off the fixed costs - this is the contribution. When enough sales are made to pay off the fixed costs completely, this is known as the breakeven point.
In the context of breakeven contribution is the amount of money from each sale used to pay off and contribute to the fixed costs after the variable costs have been paid off.
contribution is the amount of money form each sale that goes towards the fixed costs. e.g. Fixed costs = £10,000 Variable cost = £2 per bottle Sales revenue = £4 per bottle Contribution = £2 (£4-£2 = £2).
In the context of break even, contribution is the money which pays towards paying off the fixed costs when the variable costs are paid off. The contribution is from each sale to cover the fixed costs. This amount of money from each sale is after the variable costs have been covered.
When a product is sold for say £10 and they covered their variable costs the contribution of the profit could be any % of that product to pay towards the fixed costs so they can break even.
The contribution is the difference between the sales revenue and the variable cost of each unit sold or made so it is the amount that has to be paid off after the variable costs.
When a product is sold, a contribution fee has to be paid from the money earned. For example, if it costs £1 to make a pizza, and I am selling it for £10, than the £9 of profit has to paid towards your fixed costs, such as salaries, business rent ect…
In the context of breakeven contribution is the amount of money taken from the revenue that is put towards paying off variable costs.
ReplyDeleteJlew
Contribution is the amount of money from each sale that goes towards paying for the fixed costs. This is calculated by: revenue per sale - variable costs per unit. Then the money left goes towards paying off the fixed costs - this is the contribution. When enough sales are made to pay off the fixed costs completely, this is known as the breakeven point.
ReplyDeleteAfter the break even point has been reached, the money left over can contribute towards paying off the fixed costs.
ReplyDeleteLizzieee :)
In the context of breakeven contribution is the amount of money from each sale used to pay off and contribute to the fixed costs after the variable costs have been paid off.
ReplyDeleteD.L
Contribution is the amount that goes towards paying off the fixed costs after the price of making the product has been covered.
ReplyDeleteBecky
contribution is the amount of money form each sale that goes towards the fixed costs.
ReplyDeletee.g. Fixed costs = £10,000
Variable cost = £2 per bottle
Sales revenue = £4 per bottle
Contribution = £2 (£4-£2 = £2).
The contribution is the difference between the sales revenue and the variable cost. :D
ReplyDelete(>^_^)>
Contribution is the amount of revenue left after covering varible costs. that money the contributes towards the fixed costs
ReplyDeleteShanice&Jack.
In the context of break even, contribution is the money which pays towards paying off the fixed costs when the variable costs are paid off. The contribution is from each sale to cover the fixed costs. This amount of money from each sale is after the variable costs have been covered.
ReplyDeleteBy T-Man
contribution is the amount needed to pay for the veriabkle coset of each unit sold
ReplyDeleteslade
When a product is sold for say £10 and they covered their variable costs the contribution of the profit could be any % of that product to pay towards the fixed costs so they can break even.
ReplyDeleteJem
The contribution is the difference between the sales revenue and the variable cost of each unit sold or made so it is the amount that has to be paid off after the variable costs.
ReplyDeleteDani
When a product is sold, a contribution fee has to be paid from the money earned. For example, if it costs £1 to make a pizza, and I am selling it for £10, than the £9 of profit has to paid towards your fixed costs, such as salaries, business rent ect…
ReplyDeleteBrad
Contribution is the money that is left over from the variable costs and it goes towards the fixed costs. It is total costs - variable costs.
ReplyDeleteMega
n and Marcussss56
in the context of break even contribution is the money paid towards fixed costs after paying off variables xxxxxxxxxxxxxx
ReplyDeleteContribution means the amount that gets paid towards the fixed costs.
ReplyDeleteChelsie
Mr. T sleeps with a pillow under his machine gun
ReplyDelete