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in marginal costing….to calculate contribution we reduct variable production cost from sales
but any how if any variable non production cost is there like selling cost per unit in that case where it is subtracted. after contribution or its considered within contribution calculation
The contribution is the selling price less all variable costs (the marginal cost of production plus any other variable costs such as selling costs).
This is all explained in my free lectures.
The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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