Accounting Multiple Choice Question – 2 August 2022

The data given relates to a small business.

• sales – £12 000
• variable costs – £9 000
• fixed costs – £1 800
• profit – £1 200

What is the contribution to the sales ratio?

Select ONE answer:

1. 10%
2. 25%
3. 75%
4. 90%

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 ==> Sales – VC = CM ==> CM / Sales = Contribution to Sales Ratio ==> £3 000 / £12 000 = 25%
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.