the question mentions:
average price of product is rs 200 netting of a contribution of 40%
then it's selling price will be??
500
3 Replies
Prazu Shrestha
(36 Points)
Replied 04 August 2018
it's not variable cost that has been netted
but it's contribution .. so why 500?
but it's contribution .. so why 500?
Sarath Rajendran
(Nil)
(2791 Points)
Replied 04 August 2018
Sales - Variable cost= Contribution
if contribution is 40% then
200/40*100=500 is sales
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