Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:

Following information is related to sales mix of Product A, B and C.

Product A (Rs) (Rs) (Rs)
Sales Price Per Unit 15 21 36
Variable Cost Per Unit 9 14 19
Sales Mix Percentage 20% 20% 60%

Total Fixed Cost= Rs 40,000

What will be the contribution margin of B per unit?

Options:

6

7

19

25

Correct Answer:

7

Explanation:

Contribution margin per unit of B= 21-14=7