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Contribution (Break Even)

Refer to the table in Appendix 1. Calculate the: Contribution from each kg of chocolate powder sold from Factory S. (4 marks)
Summer 19 P33

Contribution = SP / Unit variable cost Revenue per kg: 9.3 3.1 = $3.00
Raw materials per kg: 2.79/ 3.1 = $0.90
Labour per kg: 1.55 /3.1 = $0.50
Transport costs: 0.62 /3.1 = $0.20

Total $0.9 + $0.5 + $0.2 = $1.6

Therefore contribution: $3 – $1.60 = $1.40 per kg(4)