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Q: What is contribution cost?
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Contribution margin format?

Contribution Margin = Sales - Variable Cost Sales Less:Variable Cost Contribution Margin Less:Fixed Cost Net profit(Loss)


How do you calculate the Contribution margin ratio?

sales-variable cost= contribution


If your revenue is 10 million your variable cost is 6 million your fixed cost is 3 million what is your contribution margin?

Contribution margin = Sales revenue - variable cost Contribution margin = 10 million - 6 million Contribution margin = 4 million


How do calculate break even point?

Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales


How do you calculate the breakeven point?

Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - variable cost


Contribution margin per unit?

Contribution margin per unit is the contribution which contribute by sales of one unit for the recovery of fixed cost after fulfiling the variable cost of product.


How do you calculate the Actual Contribution Margin?

contribution margin = sales - variable cost


Break Even Sales - Formula in Cost Accounting?

Breakeven point = Fixed Cost / Contribution margin Contribution margin = (Sales - Variable cost) / Sales


What is V ratio?

The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit. Profit = Sales - Variable Cost - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)


Contribution Margin per unit versus contribution margin ratio?

Contribution margin ratio determines the percentage of variable cost in over all sales while contribution margin per unit tells the variable cost portion in per unit total cost or sales price.


Does increasing the variable cost increase the contribution margin?

Increase in variable cost reduces the contribution margin as following formula suggests”Contribution margin = Sales revenue – Variable Cost


What is p v ratio?

The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit. Profit = Sales - Variable Cost - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)