Understanding Business Accounting For Dummies by Barrow Colin & Tracy John A

Author:Barrow, Colin & Tracy, John A. [Barrow, Colin]
Language: eng
Format: mobi
Tags: Business, Finance
ISBN: 9781119992134
Publisher: For Dummies
Published: 2011-01-03T16:00:00+00:00

Okay, so how can you increase your business's before-tax profit by £312,000? You have two choices (well, actually three choices). Take another look at Figure 9-2 and study these options:

Increase your contribution margin per unit by £0.60, which would raise the total contribution margin by £312,000, based on a 520,000 units sales volume (£0.60 × 520,000 = £312,000).

Sell 9,750 additional units at the current contribution margin per unit of £32, which would raise the total contribution margin by £312,000 (9,750 × £32 = £312,000).

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