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What is the term “CPU” meaning? I have no idea how to get the number about the contribution per hour.
Could you please help me? > . <
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CPU is contribution per unit.n u can calculate contribution per unit by deducting unit variable cost from unit sales price.contribution is different from profit as it is the amount of revenue after variable cost which can contribute towards fixed cost.but the profit is the amount which we get after deducting both variable n fixed costs.
Contribution = Selling Price – Total Variable costs (Production and non production)
then divide the contribution by the number of hours to find contribution per hour.
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