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Sir,
Why we deducted fixed cost from budgeted sales contribution while plotting it on the graph and did not deduct fixed cost from budgeted sales revenue?
Hope you had understood my question.
Question from chapter CVP analysis lecture.The profit is the contribution less the fixed costs (which is the same as the revenue less all costs – fixed and variable).
Okay.. So it’s not applicable to deduct fixed costs from sales revenue?
But from contribution only right?
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