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Hi, is sufficient to use the contribution per unit to calculate the Sales Mix Profit and Quantity Profit Variance. Or do I actually have to use the profit per unit.
If not used will using the contribution per unit for the calculation get at least some marks for the other calculations?Thank you
It depends whether it is marginal costing (in which case contribution per unit) or absorption costing (in which case profit per unit).
If it is a Section C question and you use the wrong one, then you will still get some marks for your workings (provided obviously that your workings are clear enough for the marker to follow).
Ok I believe I used the wrong one. But it’s reassuring to know I will hopefully get some marks for workings. Thanks John
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