... to use the May figures for explainingthe variances.Note that the business had budgeted for a higher level of output for June than it did for May.CHAPTER 7 ACCOUNTING FOR CONTROL224What else ... shares 60,000During June, the business intends to make payments of £40,000 for a leasehold property, 10, 000 for equipment and £6,000 for a motor vehicle. The business will also purchase initialtrading ... thecontribution is £40 a unit (that is, 100 − (£40 + £20)).If, therefore, 100 units of sales are lost, £4,000 (that is, 100 × £40) of contributions,and therefore profit, are forgone. This would be an alternative...