Question

    A company sells a unit for ₹20. Its fixed cost is

    ₹10,000, and the variable cost per unit is ₹10. What is the contribution per unit?
    A ₹5 Correct Answer Incorrect Answer
    B ₹8 Correct Answer Incorrect Answer
    C ₹10 Correct Answer Incorrect Answer
    D ₹12 Correct Answer Incorrect Answer
    E ₹15 Correct Answer Incorrect Answer

    Solution

    Contribution per unit is calculated as Selling Price – Variable Cost. Here, Contribution per unit = ₹20 - ₹10 = ₹10. This metric helps determine the portion of sales revenue that contributes to covering fixed costs and generating profit.

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