1. 6.5. Contribution Margin Accounting
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6.5. Contribution Margin Accounting
Financial Accounting - Where's the Money?

2. Which alternative to use
Task 2 - Summary
Range of products
Which alternative to use
0 – 140,000
Outside supplier
140,001 – 400,000
Semiautomatic machine
400,001 - …
Automatic machine
Financial Accounting - Where's the Money?

3. Task 3 - Illustration Start Colour Ltd produces at full capacity
30,000 Pinky for their market a
at excess capacity 6,000
24,000 Pinky for their market
(plus an additional)
6,000 Greeny for Tindal Plc
to utilize capacity b
and instead produces
(reduced from 30,000) 6,000 Greeny for Tindal Plc c
and buys from Peter Plc
24,000 Pinky
(reduced from 30,000)
6,000 Greeny for Tindal Plc
6,000 Pinky for their market
Financial Accounting - Where's the money?