E operates a marginal costing system. For the forthcoming year, variable costs are budgeted to be 60% of sales value and fixed costs are budgeted to be 10% of sales value. If
E、were to increase the selling price by 10% and all other costs and production and sales volumes were to remain the same what would be the effect on E#s contribution?
A、a decrease of 2%
B、an increase of 5%
C、an increase of 10%
D、an increase of 25%
E、were to increase the selling price by 10% and all other costs and production and sales volumes were to remain the same what would be the effect on E#s contribution?
A、a decrease of 2%
B、an increase of 5%
C、an increase of 10%
D、an increase of 25%
【参考答案及解析】
If a sales value of $100 per unit is assumed then the original and revised situations will be: Original Revised Selling price V 100 110 Variable cost/unit 60 60 Contribution/unit 40 50 Fixed costs do not affect contribution and if sales volume is unchanged then the overall change in contribution can be measured using the contribution per unit: (50-40)X100=25%
If a sales value of $100 per unit is assumed then the original and revised situations will be: Original Revised Selling price V 100 110 Variable cost/unit 60 60 Contribution/unit 40 50 Fixed costs do not affect contribution and if sales volume is unchanged then the overall change in contribution can be measured using the contribution per unit: (50-40)X100=25%