Question

If FC IS RS 4430 and the BEP in unitsis 89, then contribution margin is ?

Answer 1

Answer: RS 49.8

Step-by-step explanation:

Given the following :

Fixed cost = RS 4430

Break even point = 89 units

Recall:

Break even point in units = Fixed cost ÷ contribution margin

Therefore,

Contribution margin equals;

(Fixed cost ÷ break even point in units)

= 4430 / 89

= 49.775280

= RS 49.8