Accounting Multiple Choice Question – 24 March 2022

A business provided the following information per unit about a product.

• selling price – £20.00
• variable cost – £12.50
• fixed cost – £3.50

What is the contribution to sales ratio?

Select ONE answer:

1. 20%
2. 37.5%
3. 62.5%
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 2

1. Not correct
2. Correct – £20 – £12.50 = £7.5 / £20 ==> 37.5%
3. Not correct
4. Not correct

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