Describe the relationship between contribution and profit

Describe the relationship between contribution and profit

Relationship Between Contribution and Profit

The relationship between contribution and profit can be stated as:

Profit = contribution – fixed cost

So that contribution = profit = fixed cost This means that there are two ways of looking at contribution
  • Contribution = sales – variable cost
  • Contribution = profit + fixed

 

To Get Your ACC306 (ACC305) COST ACCOUNTING QUESTIONS AND ANSWERS SUMMARY CLICK HERE

Leave a Reply

MEET OVER 2000 NOUN STUDENTS HERE. 

Join us for latest NOUN UPDATES and Free TMA answers posted by students on our Telegram. 

OUR ONLINE TUTORIAL CLASS IS NOW ON!!! JOIN US NOW. 
JOIN NOW!
close-link
%d bloggers like this: