Characteristics of traditional profit and loss criticality and contribution profit and loss criticality

The above variable cost, the most basic form.

1. The contribution gross profit formula is characterized by putting the fixed cost above the variable cost, and the contribution gross profit and loss critical diagram emphasizes the contribution gross profit and its formation process.

2. The traditional formula is the most basic form of the profit and loss critical diagram, which is characterized by placing the fixed cost under the variable cost, thus clearly indicating that the fixed cost does not change with the business volume.