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WorksheetsMarginal costing
Total questions: 7
Worksheet time: 3mins
What is the formula for break even?
Contribution/fixed costs
Fixed costs/contribution per unit
Sales price - fixed costs
Sales price - variable costs
How do you calculate the number of unit to make a target profit?
Contribution - fixed costs
Sales - fixed costs
Fixed costs + target profit/ Contribution per unit
Sales - variable costs
Margin of safety is?
The number of units sold above the break even point
Sales - variable costs
Fixed costs / contribution per unit
When a limiting factor is present we base the decision on which products to make based on the product that gives the highest contribution?
True
False
Marginal costing gives a higher profit than absorption costing if stock levels are reducing?
True
False
Sales price is £45 material is £12, labour is £8 and fixed production costs are £5 the contribution is?
£33
£20
£25
Budgeted sales are 12,000 units and the break even is 7,500 units what is the margin of safety as a %.
62.5%
60%
37.5%
