What does CPU stand for?

Sales to the non-group company were expected to be 40,000 units a year and the contribution per unit from these sales would be the same as what the subsidiary currently earns from its sales to Malaysia.

Table I STANDARD COSTING BASED MAKE-OR-BUY ANALYSIS FOR EXAMPLE 1 Per Unit Per Unit Cost Component Make Cost Buy Cost Direct Labor (12 minutes at $20 per hour) $4 -- Material ($6/unit) $6 $29 Variable Overhead (12 minutes at $30 per hour) $6 -- TOTAL $16 $29 Table II CPCM ANALYSIS FOR EXAMPLE 1 Buy Component Row Make Component C C 1 Sales price of product M $174 $174 2 Material cost $20 + $6 = $26 $20 + $29 = $49 3 Contribution per unit for M $148 $125 4 Minutes required at 20 + 12 = 32 20 constraint (workstation B) for M 5 CPCM (Row 3 / Row 4) $4.

The Contribution Per Unit of Constraint (under excess demand, internal-resource constraint).

Again, our operations showed strong increases in revenue and operating contribution per unit.

Regular readers will know that I am attached to the standard marginal technique of costing, along with: * a focus on contribution per unit of limiting factor, since steering a product away from a limiting factor can increase profit by increasing the absorption cost; * a meaningful interpretation (as opposed to a mechanistic analysis) of variances, since this is the main war" to learn lessons and identify improvements.

At the same time, we are controlling operating expenses and producing record levels of operating contribution per unit - well above the industry average.

This is not restricted to narrow financial matters -- for example, our colleagues' grasp of such concepts as contribution per unit of limiting factor.

Estimated contribution per unit is approximately two cents up to a maximum of $100,000.