- This topic has 1 reply, 2 voices, and was last updated 1 year ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Practice question chapter 7 , Quiz nr 1, selling price is calculated as v.c 28 / 70%. Please can you explain how 70% has been calculated? Thank you
The CS ratio is 30%. Given that the contribution is the selling price less the variable costs, then for every $100 the contribution is $30 and the variable costs must be $70, or 70% of the selling price.
If the variable cost is $28 and this is 70% of the sales, it means that the selling price must be 28/70%.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.