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capital budget

IPCC 249 views 3 replies
the question mentions:
average price of product is rs 200 netting of a contribution of 40%
then it's selling price will be??
Replies (3)

500                                               

it's not variable cost that has been netted
but it's contribution .. so why 500?

Sales - Variable cost= Contribution

if contribution is  40% then 

 200/40*100=500 is sales 


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