Common AS-Level Business Studies Equations

Here is a list of routinely forgotten equations for Business Studies, make sure to memorise them. Equations Total Contribution = Total revenue – Total variable cost Contribution per unit = Selling price per unit – Variable cost per unit or (for total contribution) Contribution per unit x Number of units sold Profit = Total contribution – Fixed cost Break-even Output = Fixed cost / Contribution per unit What do they mean? Contribution is useful for a business to be responsible for a range of products, it allows them to calculate how much money they make on a sale. The Break-even charts… Continue reading Common AS-Level Business Studies Equations