Profit using Marginal was 12,500. Absorption profit 13,500. Fixed over head 5000. What is the contribution?

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Variable costing and absorption costing?
Posted by:
Anayatullah Tahir
24-March-2014

Accounting Economics Management

Question added by Steve Alq
Date Posted: 2016/07/21

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2 Answers

RATHEESH RAVEENDRAN

by RATHEESH RAVEENDRAN , Graduate Teacher (Head of Business Department) , HANIMAADHOO SCHOOL

Answer is 18500

Contibution = Profit + Fixed overhead

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Zaheer uddin Raja

by Zaheer uddin Raja , Accounts Supervisor , Pakistan International Airlines

Revenue less V.costs = Contribution

Contribution less F.costs = Profit

Therefore;

Profit plus F.costs = Contribution

Now, please calculate contribution under each costing method as per question.

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