the question mentions:
average price of product is rs 200 netting of a contribution of 40%
then it's selling price will be??
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Replies (3)
500
it's not variable cost that has been netted
but it's contribution .. so why 500?
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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