effects on contribution

This topic contains 2 replies, has 2 voices, and was last updated by Avatar of abdulwahabsiddiq abdulwahabsiddiq 3 years, 11 months ago. This post has been viewed 26 times

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  • Avatar of abdulwahabsiddiq
    abdulwahabsiddiq
    Participant
    • Topics: 16
    • Replies: 54

    can somebody guide me please
    if sales volume decrease and production volume increase
    contribution per unit increase or decrease.?
    if sales volume is equal to production volume both rises or fall
    contribution increase or decrease?
    please help!!!!!!!!!!


    Avatar of johnmoffat
    John Moffat
    Keymaster
    • Topics: 3
    • Replies: 3798

    Contribution per unit will not change.

    It is irrelevant how many you produce or sell – contribution per unit is selling price per unit minus variable cost per unit. So contribution per unit will only change if selling price p.u. or variable costs p.u. change.

    (Total contribution will change with the number of units sold, but not the contribution per unit)


    Avatar of abdulwahabsiddiq
    abdulwahabsiddiq
    Participant
    • Topics: 16
    • Replies: 54

    thanksssss! i got it know

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