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A company manufactures and sells soap. The direct material costs per unit is K2.00, the direct labour cost is K1.00 per unit and fixed overheads are absorbed at K0.50 per unit. If the selling price is K5.00 per unit what is the contribution to sales ratio??

A company manufactures and sells soap. The direct material costs per unit is K2.00, the direct labour cost is K1.00 per unit and fixed overheads are absorbed at K0.50 per unit. If the selling price is K5.00 per unit what is the contribution to sales ratio??

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company manufactures and sells soap. The direct material costs per unit is K2.00, the direct labour cost is K1.00 per unit and fixed overheads are absorbed at K0.50 per unit. If the selling price is K5.00 per unit what is the contribution to sales ratio??
Transcribed Image Text:A company manufactures and sells soap. The direct material costs per unit is K2.00, the direct labour cost is K1.00 per unit and fixed overheads are absorbed at K0.50 per unit. If the selling price is K5.00 per unit what is the contribution to sales ratio??
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