Question

When 10,000 units are produced and the sales price is $60 per unit, what are the

variable costs if the contribution margin is $20?
a.
$200,000
O b.
$40,000
O C.
$250,000
O d.
$400,000

Answer 1

units 10000

contribution per unit = $20

sales per unit(price)= $60

we know that, variable cost= sales - contribution

1 method--

variable cost= $60 - $20

= $40 per unit

variable cost = 10000 units *$ 40

= $400000

2nd way----

contribution = 10000 units * $20

= $200000

sales = 10000 units * $ 60

variable cost = $600000 - $200000

= $ 400000