Answer :
Throughput contribution equals c. revenues minus all direct material cost of goods.
In Business and financial studies, especially at the college level, the concept of throughput contribution is fundamental. This measure helps in understanding the contribution of processes and operations towards covering the fixed costs and generating profit.
This can be illustrated through an example: If a company's total revenue from sales is $10,000 and the cost of the direct materials used to produce the goods sold is $6,000, the throughput contribution would be $10,000 - $6,000 = $4,000. This $4,000 is what is left to cover the fixed costs and contribute to profit.
