Contribution in Break-even Point

Break-even Analysis
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Contribution in Break-even Point

What's the meaning of the phrase of "contribution " when refering to the break-even point?

  M Manjunath
 

Economics

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.

  Roberto Valadez
 

Meaning of Contribution

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.

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