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Management · Q305

Management Accounting

Graduate and Post Graduate · Management · question 305

Q305

If fixed cost is 15000 and breakeven revenue is 45000 then contribution margin will be

A.
33.34%
Answer
B.
43.34%
C.
23.00%
D.
25.00%

Answer: Option A

Solution

Answer: Option A
Solution:
Contribution margin = Fixed cost ÷ Breakeven revenue × 100
= 45000 × 100 = 33.34%.
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