CIMA BA2 · Chapter 10 · Question 1 of 12
A product has a selling price of $24 per unit and variable costs of $15 per unit. What is its contribution to sales (C/S) ratio?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 37.5%
Explanation
Contribution per unit = $24 - $15 = $9. C/S ratio = $9 / $24 = 0.375, or 37.5%. 62.5% is the variable cost to sales ratio.
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