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# Homework Help - Finance watch

1. A business sells 250 items at £75, generating a profit of £6,750 from a contribution of £35 per unit. What are its fixed costs? (3 marks)

Can someone help me? Confused!
2. (Original post by claudiamendes)
A business sells 250 items at £75, generating a profit of £6,750 from a contribution of £35 per unit. What are its fixed costs? (3 marks)

Can someone help me? Confused!

Here's a possible answer just from googling what 'contribution' is

Each unit makes a contribution of £35 so selling 250 units makes a contribution of £8750.

Profit is the money after all costs have been taken away from the income.
So if a profit of £6750 is gained from £8750, there must have been £2000 in fixed costs.

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