This spreadsheet presents, through two examples, the main problems arising from the allocation of Fixed Indirect Costs, justifying the analysis by the Contribution Margin. The first example is of a problem faced by a factory that intends to allocate Fixed Costs and realizes that this allocation by different criteria led to four different results. The second example is of a problem of a steel industry that receives an order for extra products from the international market at a lower price than that practiced in the domestic market. The analyses of 3 costing alternatives are made to demonstrate that the concept of Contribution Margin is the most appropriate for evaluating a decision.
 Note: The spreadsheets available for download are based on references from blog posts and should be viewed only as supplementary study material. We do not offer support for technical questions regarding the theoretical content of the spreadsheets. This material does not exempt the user from adequate monitoring by a professional in order to obtain greater reliability, both in execution and in calculations.