1
10 points
PQRS sells Product X. The cost card for that product is given below.
$
Direct materials
4
Direct labour
5
Variable production overhead
3
Fixed production overhead
2
Variable selling cost
3
The selling price per unit is $20. What is the contribution per unit?
$8.00
$0.50
$5.00
$11.00
2
10 points
A company produces and sells a single product whose variable cost is $6 per unit. Fixed costs have been absorbed over the normal level of activity of 200,000 units and have
been calculated as $2 per unit. The current selling price is $10 per unit. How much contribution is made under marginal costing if the company sells 250,000 units?
$400,000
$360,000
$1,000,000
$324,000