Variable Cost Per Unit

[shunmas]

Greetings friends !

Does Variable cost (for calculation of contribution) also include non production variable cost...like for example:

DM £2,000
DL £5,000
Variable Production Overheads £3,000
Variable Selling Cost £2000
Non-production variable cost £1,000
Fixed Production Overheads £3,000

So will we include Non-production variable cost in the calculation ???

Cheers

[Acid]

Hi

Thank you for your post.

Except for Fixed Production Overheads we will include all other figures (including Non-production variable cost) in the contribution calculation.

I hope this helps.