Complete the Marginal Cost equation Sales minus Fixed Cost plus Profit ........

Costing ( Revenue Account ) Basics of Cost Control and Analysis

Complete the Marginal Cost equation:

Sales minus Fixed Cost = _____ plus Profit.

Sunk Cost

Contribution

Variable Cost

Standard Cost

Sure thing. Let’s break it down:

- The equation you gave is: Sales minus Fixed Cost = _____ plus Profit.

- In Marginal Costing, here’s how the flow works:

- Sales – Variable Cost = Contribution

- Contribution – Fixed Cost = Profit

- So, Sales – Variable Cost – Fixed Cost = Profit

.Sales – Fixed Cost = Variable Cost + Profit

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