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?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 Â
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