Question

8. If Sales are Rs. 80,000 and variable cost to sales is 70%
contribution is
​

Answer 1

Given:

Sales = 80,000

Variable cost = 70% of sales

To Find:

Total Contribution

Solution:

Since Variable cost is 70% of sales, thus VC -

70% of 80,000

70/100 x 80,000

= 56,000

Now, calculating the contribution -

Contribution = Sales - Variable Cost

= 80,000 - 56,000

= 24,000

Answer: The contribution is Rs. 24,000

Answer 2

Answer:        contribution = sales - variable cost

                                            = 24,000

Explanation:

sales = 80,000

variable cost = 80,000*70%

                      = 56,000

we know that,

contribution = sales - variable cost

                    = 80,000 - 56,000

                    = 24,000