If FC IS RS 4430 and the BEP in unitsis 89, then contribution margin is ?
1 answer:
Answer: RS 49.8
Step-by-step explanation:
Given the following :
Fixed cost = RS 4430
Break even point = 89 units
Recall:
Break even point in units = Fixed cost ÷ contribution margin
Therefore,
Contribution margin equals;
(Fixed cost ÷ break even point in units)
= 4430 / 89
= 49.775280
= RS 49.8
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