If Variable Cost is Rs 80 000 Fixed Cost is Rs 10 000 and Profit is 15 000 the contribution margin w...........

Finance (Phase -I & II) Analysis of Financial Statements

If Variable Cost is Rs. 80,000/-, Fixed Cost is Rs. 10,000/- and Profit is 15,000/-, the contribution margin will be:

Rs. 10,000/-

Rs. 25,000/-

Rs. 90,000/-

Rs. 95,000/-

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Explanation:

Contribution is the difference between sales and variable cost or marginal cost. It is excess of selling price over variable cost per unit. It can also be calculated as: Fixed Cost (+) Profit. In the given problem, contribution is 10,000/- (+) 15,000/- = 25,000/-