@dipatiil that’s exactly what I’m talking about. It did say for example that 80% of admin costs are fixed so the remaining you had to divide by number of units which came to $2 per unit. With the production overheads $6 was variable and the rest was fixed so you just deduct it from the total.
Contribution is sales – variable costs so i think you head to strip out all fixed costs and add any extra variables (royalty, commission, admin). My contribution was something like 90,150 and 120?
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