cvp analysis

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July 12, 2017 at 10:37 am #395560
adarsh1997
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Hi John!

I have watched your lectures on CVP but has some issue concerning example 6.
If we were asked to calculate the average contribution and average revenue, what will be the calculation. (what will be the logic behind the calculation?)

Thanks.
July 13, 2017 at 6:54 am #395695
John Moffat
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I assume you mean the average contribution per unit and the average revenue per unit.

You would calculate the total contribution (and the total revenue) and divide by the number of units.
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