Price per unit 20
units production 40000
variable cost per unit 5

Question

Contribution margin percentage will be

A-90%

B-70%

C-75%

D-80%

Abd ElRahman Mohammed Idris Mohammed · Answer

(C)75%

Sales 20*40000 =800,000

Variable cost5*40000 =200,000

Contribution Margin =600,000 (600,000/800,000)% =75%

Muhammad Ramzan Tufail ACCA · Answer

(C) is the Correct Ans.

Contribution = Sale - Variable Cost

=20 - 5

=15 / Unit @40,000 Units =600,000

So, Contribution Margin is,

=600,000 /800,000*100

= 75%

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN · Answer

Sales - variable cost =15

Answer option: 75%