Question

If sales are rupees 80000 and variable cost to sales 70% contribution is

Answer 1

Answer:

do 80000×70% ok I think it can help you

Answer 2

The Contribution will be ₹24000.

Explanation:

Given: Sales = 80000

           variable cost to sales ratio 70%

Asked: contribution

Solution:

• Problem to be solved by preparing an income statement.
• Contribution is the profit that remained after deducting the variable cost from the sales. still, the fixed cost needs to be deduct.
• sales                               = 80000
• variable cost@70%        =(56000)
• contribution                   = 24000
• variable cost to sales ratio 70% = 80000*70% = 56000.
• Thus, the contribution will be ₹24000.