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What is the contribution margin ratio

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Reference no: EM132607091

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Q1. Fatt Choo Sdn Bhd's sales are RM820, 000, variable costs are 62% of sales, and operating income is RM260, 000, what is the contribution margin ratio?

A. 53.1%

B. 38%

C. 62%

D. 32%

Q2. If fixed costs are RM500, 000 and the unit contribution margin is RM12, what amount of units must be sold in order to realize an operating income of RM100, 000?

A. 5,000

B. 41,667

C. 50,000

D. 58,333

Q3. If sales, variable costs and operating income are RM400, 000, RM200, 000 and RM100, 000 respectively, what is the contribution margin ratio?

A. 75%

B. 50%

C. 25%

D. 0%

Q4. Titian Bhd had a contribution margin of RM300, 000 and a contribution margin ratio of 20%, what is the total variable cost?

A. RM1,500,000

B. RM1,200,000

C. RM240,000

D. RM60,000

Q5. Zaza West Sdn Bhd reported the following data in its Statement of Profit or Loss and Other Comprehensive Income:

Unit sold 8,000

Sales revenue RM9,600,000

Variable costs RM6,000,000

Fixed cost RM2,600,000

If the company desired to earn a target net profit of RM1,270,000, it would have to sell:

A. 5,778 units

B. 8,600 units

C. 10,160 units

D. 11,908 units

Reference no: EM132607091

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