How contribution is calculated in break-even analysis?

L4M5 0 Comments

How contribution is calculated in break-even analysis?
A . Fixed costs divided by variable costs
B . Variable costs subtracted from price
C . Price minus fixed costs
D . Variable costs subtracted from fixed costs

Answer: B

Explanation:

Contribution = Price – Variable cost Break-evenpoint (volume) = Fixed cost/Contribution

Latest L4M5 Practice Questions with 162 Q&As

Updated Study Material | Instant Download | Detailed Answers and Explanations

Instant Download L4M5 PDF     L4M5 Questions Online Training
Subscribe
Notify of
guest
0 Comments