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

Costs and cost behaviour — practice question

The details below relate to one unit of a product. Selling price: $100$ Contribution: $40$ Profit: $10$ The selling price is forecast to rise by $10$. Costs are forecast to stay the same. What change will there be in the contribution to sales ratio?

  • A3.64% decrease
  • B3.64% increase
  • C5.45% decrease
  • D5.45% increase

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