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C

Capital Expenditure

Capital expenditure are funds used to acquire or upgrade physical assets such as property, buildings or equipment and also intangibles

Capital income

Income that comes from the investors/owners of a business. This income is typically used to buy assets for the company like property or equipment. Sources of capital income include:

  • loans
  • mortgages
  • shares
  • owner's capital
  • debentures.

contribution per unit



Contribution per unit (example)

The amount of contribution selling one unit will make towards breaking even. Calculated as Selling price - Variable cost per unit.

E.g. If you are selling each unit for £10, and they each cost £4 to make, you would do £10-£4=£6. This means that the contribution per unit is £6. 

Contribution per unit is also used to calculate the break even point

How To Find Unit Contribution Margin | Slide Elements

Current Ratio

current ration explainer