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

Contribution margin percentage will be A-90% B-70% C-75% D-80%

Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/21

Upvote (2) Views (2) Followers (4) Answers (3) Report Question

by Abd ElRahman Mohammed Idris Mohammed , Internal Audit Manager , Kenana Sugar Company Limited

Sales 20*40000 =800,000

Variable cost5*40000 =200,000

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

by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

(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%

by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Sales - variable cost =15

Answer option: 75%

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