Envico (12/05)

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March 30, 2011 at 5:13 am #47926
nadir
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See BPP exam kits number 24 Envico (12/05). See the answer of part a, to calculate the room cost why it has made delegate fees minus contribution. Delegate fees is a revenue for Envico and contribution also is a revenue, so why it has made this to arrive to room cost???
PLEASE REPLY Thanks in advance
April 10, 2011 at 11:59 am #80515
John Moffat
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Contribution = revenue – variable costs

Therefore, cost = revenue – contribution.

We know the revenue (80 per delegate) and we know the contribution from the table.
So we can work out the cost.
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