Tag: Contribution To Sales Ratio

Accounting Multiple Choice Question – 16 October 2023

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The financial data in the table below relates to a small business called Alex Trading:.

  • Sales – £6,000
  • variable costs – £4,500
  • fixed costs – £900
  • net profit – £600

What is the contribution to sales ratio?

Select ONE answer:

  1. 10%
  2. 25%
  3. 33.33%
  4. 75%

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 == > £1,500 (£900 + £600) / £6,000 = 25%
  3. Not correct
  4. Not correct

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