Business A-Level
Contribution and break-even
What Contribution and break-even means in Business A-Level, as defined for AQA.
Definition of Contribution and break-even
Check what you remember
Read the wording for your board, then hide it and explain Contribution and break-even in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A price cut agreed by marketing changes contribution per unit, the selling price minus the variable cost per unit, and therefore the break-even output, fixed costs divided by contribution per unit.
Topics that use Contribution and break-even
- Marketing management (AQA A-Level)
Related terms
- application to a named business
- capacity utilisation
- Cash flow and working capital
- cost leadership
- differentiation
- digital marketing
- Dynamic pricing
- Environmental sourcing and packaging
Using Contribution and break-even in the exam
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