Selling price of a product-X is ₹50 per unit, variable cost ₹20 per unit and 2 Kgs. of raw material is needed to produce a unit of product-X. The contribution per Kg. of raw material will be —

CS Executive · Cost and Management Accounting · PYQS · June 2015
Selling price of a product-X is ₹50 per unit, variable cost ₹20 per unit and 2 Kgs. of raw material is needed to produce a unit of product-X. The contribution per Kg. of raw material will be —
(A) ₹30
(B) ₹15
(C) ₹60
(D) ₹50.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Marginal Costing

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