net contribution

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August 22, 2020 at 2:10 pm #581496
Holmes1308
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sir what is net contribution towards general fixed costs and profit? same as the normal contrn we know, i.e. sales-VCs?? or something different?
August 22, 2020 at 3:44 pm #581512
John Moffat
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Yes – there is only one contribution. Sales less variable costs.

The fixed costs then come out of the contribution and we then have the profit.
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