Answer Posted / h.r. sreepada bhagi
In Cost Accounting, the Term Contribution =
Sales Revenue / Sales Income Income - Variable cost of
Products sold.
Example : If 100000 Units of a product are sold @ Rs.10/-
unit, Sales revenue is Rs.10,00,000/-. If the variable cost
of these 1 Lac. units is Rs.5/- per unit, total variable
cost of products sold will be Rs.5,00,000/-. Hence
Contribution is Rs.5,00,000/-
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