PRC-2 · Chapter 2 · Question 19 of 45
A product has a variable selling cost of Rs. 2 per unit and a total selling price of Rs. 8. If the total contribution margin per unit is Rs. 3, what is the variable production cost per unit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 3
Explanation
Contribution Margin = Selling Price - Total Variable Costs. Therefore, 3 = 8 - Total VC, making Total VC = Rs. 5. Since Total VC includes both production and selling costs, the Production VC = 5 - 2 = Rs. 3.
More Coordinate System and Its Application MCQs
- Q21What is the slope of the straight line passing through the coordinates (1, 3) and (5, 15)?
- 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?