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    Question

    Vishal Ltd sold 4000 units clocking in total Sales of

    Rs.40,000 for which the total cost was Rs.30,000, of which 80% was variable. What is the total and per unit contribution for Vishal Ltd?
    A Rs.10,000 and Rs.2.5 per unit Correct Answer Incorrect Answer
    B Rs.70,000 and Rs.3.5 per unit Correct Answer Incorrect Answer
    C Rs.34,000 and Rs.8.5 per unit Correct Answer Incorrect Answer
    D Rs.16,000 and Rs.4.0 per unit Correct Answer Incorrect Answer
    E Rs.20,000 and Rs.5.0 per unit Correct Answer Incorrect Answer

    Solution

    Contribution = sales – variable cost variable cost = 80% of total cost = 80% of 30000 = Rs.24,000 Total contribution = 40000 – 24000 = Rs.16000 Contribution per unit = total contribution/no of units sold = 16000/4000 = Rs.4  

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