Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

For the production of 2000 units of a product, a company has the following data. Sales revenue: 85 000 Direct materials: 30 000 Direct labour: 14 000 Direct expenses: 2 500 Other variable overheads: 10 200 Fixed overheads: 8 000 Calculate the contribution to sales ratio.

  • A23.88%
  • B33.29%
  • C45.29%
  • D54.71%

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