Contribution analysis

IB Business Management: Contribution analysis

3.3 Contribution analysis (AO2)Oyster vendor at Greenwich Market, London, UKThis section of the IB Business Management syllabus looks at the difference between total contribution and contribution per unit (AO2).Break-even exists when a firm’s sales revenues cover all of its production costs.The break-even quantity (BEQ) is the level of output where a business does not make either a profit or a loss.


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