Explain the concept of contribution in relation to break even analysis.
Introduction to Break-Even Analysis and Calculation
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University
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Hard
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3 questions
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1.
OPEN ENDED QUESTION
3 mins • 1 pt
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2.
OPEN ENDED QUESTION
3 mins • 1 pt
If a shop has fixed costs of £4000 and sells shirts for £50 each with variable costs of £10, what is the break even level of output?
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3.
OPEN ENDED QUESTION
3 mins • 1 pt
Calculate the profit if the firm sells 150 units given the fixed costs and contribution per unit.
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