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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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