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MAeffects on contribution

Aabdulwahabsiddiq16y ago
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!!!!!!!!!!
John MoffatJohn MoffatTutor16y ago#1
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)
Aabdulwahabsiddiq16y ago#2
thanksssss! i got it know
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