PRC-2 · Chapter 2 · Question 20 of 45
A company sells a product for Rs. 60 with a variable cost of Rs. 30 per unit. Next year, both the selling price and the variable cost will increase by exactly Rs. 5 each. What is the percentage change in the contribution margin per unit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 0%
Explanation
Current contribution margin is 60 - 30 = Rs. 30. New selling price is 65, new variable cost is 35. New contribution margin is 65 - 35 = Rs. 30. Because the absolute margin remains exactly Rs. 30, the percentage change is 0%.
More Coordinate System and Its Application MCQs
- Q22What is the y-intercept of the linear equation 2x - 5y = 20?
- Q23Which of the following equations correctly represents a straight line passing through the origin with a positive slope of 4?
- Q24If Line A is defined by the equation y = 3x - 4, what must be the slope of Line B for it to be perfectly perpendicular to Line A?
- Q25Which of the following mathematical conditions must be met for two distinct straight lines to be strictly parallel?
- Q26Calculate the exact linear distance between the origin point (0,0) and the coordinate point (6,8).