Day: February 6, 2022

A business has the following information relating to its single product.

• selling price per unit – £30
• variable cost per unit – £14
• total cost per unit – £24

What is its contribution to sales ratio?

Select ONE answer:

1. 20%
2. 46.67%
3. 53.33%
4. 80%

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct ==> £30 – £14 = £16 / £30 ==> %53.33
4. Not correct

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