https://hbr.org/product/basic-quantitative-analysis-for-marketing/584149-PDF-ENG
1. total cost for output level V=fixed cost + total variable cost for output level V
=fixed cost + (k*V)
k is the cost of producing one more unit of output
2. if k is the constant unit variable, P is the price, V is total number of units sold
unit contribution=P-k
total contribution= (P-k)*V
total contribution=PV-kV=total revenue-total variable cost
thus total conctibution is the amount available to cover fixed cost and profit
3. margin is used to refer to the diference between the acquisition price and selling price
so dollar margin is a measure of how much each organization makes per unit sold
4. retailer's percent margin
=(selling priceto customers-purchase price from wholesaler)/selling price to customers
=retailer's dollar margin/selling price to customers
5. break-even volume: the volume at which the firm's total revenues equal total cost
total revenue=total cost
price*BEV=fixed cost+(k*BEV)
so, BEV=fixed cost/(price-k)=fixed cost/unit contribution
6. numbers have meaning only when there's come benchmark to compare them to
