Business A-Level
contribution squeeze
What contribution squeeze means in Business A-Level, as defined for AQA.
Definition of contribution squeeze
Check what you remember
Read the wording for your board, then hide it and explain contribution squeeze in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A rise in variable cost per unit steepens the total cost line from the same starting height, cutting contribution per unit and pushing break-even to the right.
Topics that use contribution squeeze
- Analysing financial performance (AQA A-Level)
Related terms
- break-even output
- cash flow forecast
- contribution per unit
- credit terms
- data reliability
- forecast risk
- gross profit margin
- linearity assumption
Using contribution squeeze in the exam
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