If the contribution margin of bundle is $4000 and the revenue of the bundle is $16000, then the contribution margin percentage for bundle will be _____________?
Correct answer: C. 25%
- A. 10%
- B. 15%
- C. 25%
- D. 35%Compare Credit Cards
Explanation
Contribution margin percentage equals contribution margin divided by revenue: $4,000 ÷ $16,000 = 0.25, or 25%.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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