Contribution in Break-even Point
jianping Wang What's the meaning of the phrase of "contribution " when refering to the break-even point? (...) Read more? Sign up for free
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M Manjunath It is equal to per unit price minus per unit variable cost. It is the contribution the revenue or sale price makes towards covering fixed cost and profit, if any.
Meaning of Contribution
Roberto Valadez The word 'contribution' when refering to a break even point consists in generating of profits. It is the profit of each one of the products. It is convenient because your level of productions begin to create profits and it is very important because you can and you must know the contribution of each product.