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Business & Entrepreneurship
Calculate contribution per sale
Contribution is sales revenue minus variable costs. It contributes toward fixed costs and profit; it is not the same as final profit.
Worked example
A product sells for ₹500 and has variable costs of ₹300, giving ₹200 contribution. With ₹10,000 fixed costs, the simplified break-even quantity is 50 units.
Try it yourself
What if the contribution falls to ₹100 with fixed costs unchanged?
Reveal the answer and reasoning
Break-even rises to 100 units. Real decisions must also consider demand, capacity and which costs are included.
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