Question: Hello! I need some help responding to this post. I am taking an accounting class and we have to respond to things that people post.
Hello! I need some help responding to this post. I am taking an accounting class and we have to respond to things that people post. I need some help responding to the post below. Any help you can give me would be greatly appreciated!
CVP analysis also handles the margin for product input. The disparity between net revenue and the average variable costs is the contribution margin. The contribution margin must be greater than the overall fixed costs for an organization to be profitable. It is possible to also calculate the contribution margin per unit. After unit variable cost is subtracted from the unit selling price, the contribution margin is just the rest. The margin of contribution is based on the overall revenue division of the contribution margin.
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