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Pricing

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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November 2, 2016 at 7:05 pm #347131
bigty
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- Topics: 11
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Dear Moffat,
example 6 on pricing lectures why subtracting $5 variable cost per unit from price $62.50 to find total contribution ?
November 3, 2016 at 6:37 am #347169
John Moffat
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- Topics: 57
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Because contribution = selling price – variable cost !!!
(which is the same as profit before fixed costs)
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