Contribution pricing
Contribution pricing
Glossary of business
Definition of contribution pricing
Contribution pricing is where the price charged is based on the variable costs of production. A price is set that is greater than the variable costs, so that a contribution is made towards fixed costs. For example, if the variable costs are $4 per unit and the firms sells the good for $6, then each unit sold will make a 'contribution' to fixed costs of $2. If total fixed costs are $1,000, then the firm will need to make 500 units to break-even.
Source : http://business-tes.wikispaces.com/file/view/Glossary.doc
link: http://business-tes.wikispaces.com/
Author : not indicated on the source document of the above text
Terminology about business
Job world
Definition and meaning of contribution pricing
Meaning of contribution pricing
This is the right place where find the answers to your questions like :
Who ? What ? When ? Where ? Why ? Which ? How ? What does contribution pricing mean ? Which is the meaning of contribution pricing ?
What does contribution pricing mean ?
Alanpedia.com from 1998 year by year new sites and innovations
Main page - Disclaimer - Contact us