Marginal Costing Basics
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Q. A company has a variable cost of $12 per unit and a selling price of $20 per unit. What is the contribution margin ratio?
Q. A company sells a product for $50 per unit. If the variable cost per unit is $30, what is the contribution margin per unit?
Q. A product has a selling price of $80 and variable costs of $50. What is the contribution margin ratio?
Q. If a company has a margin of safety of $5,000 and its total sales are $25,000, what is the break-even sales level?
Q. If a company has a selling price of $80, variable costs of $50, and fixed costs of $10,000, what is the margin of safety in dollars if they expect to sell 300 units?
Q. If a company has fixed costs of $5,000 and variable costs of $15 per unit, what is the total cost for producing 200 units?
Q. If a company has fixed costs of $5,000 and variable costs of $15 per unit, what is the marginal cost per unit?
Q. If a company produces 1,000 units at a total cost of $15,000, what is the average cost per unit?
Q. If a company produces 200 units and incurs total variable costs of $4,000, what is the variable cost per unit?
Q. If the fixed costs are $12,000 and the variable cost per unit is $20, how many units must be sold to achieve a target profit of $8,000 if the selling price is $50?
Q. If the total fixed costs are $12,000 and the contribution margin ratio is 40%, what is the sales revenue needed to break even?
Q. What is the break-even point in units if fixed costs are $10,000 and the contribution margin per unit is $25?
Q. What is the break-even point in units if fixed costs are $10,000 and the contribution margin per unit is $50?
Q. What is the marginal cost of producing one additional unit if the total cost of producing 100 units is $1,000 and the total cost of producing 101 units is $1,020?
Q. What is the total contribution if a company sells 300 units with a contribution margin of $40 per unit?
Q. What is the total contribution margin if a company sells 150 units at a contribution margin of $25 per unit?
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