If FC IS RS 4430 and the BEP in unitsis 89, then contribution margin is ?

Question

asked Jun 6, 2021 8.3k views

1 Answer

Binary Nerd · Answer 1 · 2021-06-12T05:47:16+0000

Answer: RS 49.8

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