Contribution analysis

IB Business Management: Contribution analysis

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.The formula for calculating the BEQ is:

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