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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Question 3 – mock exam 1 bpp – specimen paper
Could you please explain could how the contribution per unit is worked out in this question. Why is the fixed cost added back to the profit per unit
By definition, the contribution is revenue less variable costs, which is always the same as profit plus fixed costs.
Have you watched my lectures on CVP analysis? The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.
Thank you sir. Your help means a lot
You are welcome 🙂